Mortgage Minute 2: COVID-19 and Mortgage Rates

Mortgage Minute 2: COVID-19 and Mortgage Rates

Two weeks ago the Bank of Canada lowered it’s overnight rate by a half percent. This was the largest single day drop since 2008. Just over a week later on Friday the 13th, they did it again in an unscheduled rate announcement.

The major banks didn’t immediately follow suit, but as of today we have seen the banks pass along the full half percent rate drop again.

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Fixed Rates on the Rise Despite Covid-19 Scare

Fixed Rates on the Rise Despite Covid-19 Scare

The Bank of Canada announced an unplanned change to their overnight rate to take effect Monday March 16, a cut of an additional 50 basis points just 9 days after the Bank had already cut the overnight rate by 50 basis points. In under two weeks the overnight rate will have dropped from 1.75% to just 0.75%. The Bank of Canada stated that, "This...

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Big Banks Mirror Bank of Canada Rate Cuts

Big Banks Mirror Bank of Canada Rate Cuts

Within hours of the Bank of Canada's announcement that they had cut the overnight rate down by 50 basis points to 1.25% several big banks followed suit. It was uncertain whether the banks would move in lockstep with this announcement, but they have. The Bank of Canada's move was not predicted by speculators, but is largely believed to have been...

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Bank Of Canada Cuts Rates for First Time Since 2015

The Federal Reserve made an unscheduled rate announcement yesterday and cut their overnight rate by 50 basis points. The Bank of Canada wasn't largely expected to cut its rate today at its scheduled announcement, but it followed suit and also cut its overnight rate by 50 basis points. This is the first rate cut we've seen since 2015. Anyone who...

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Mortgage Minute 1: Bank of Canada Drops Rates by 50 points

Mortgage Minute 1: Bank of Canada Drops Rates by 50 points

The Bank of Canada cut its overnight rate for the first time in four years. This follows the US Central Bank doing the same thing just yesterday. In the BoC announcement it seems that the overall Canadian economy has been doing sufficiently well that under normal circumstances they would not have dropped the rate. However the BoC views the threat...

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No Stress Test on Mortgage Renewals

More good news for people who have been struggling with the mortgage stress test! It was recommended by FINA (House of Commons Standing Committee of Finance) to the federal government that they "exempt mortgages from the stress-test where the mortgagor has already met the obligations of their original mortgage." This is great news for existing...

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New and Improved Stress Test!

New and Improved Stress Test!

The Department of Finance announced Tuesday changes to the mortgage stress test. "The new benchmark rate will be the weekly median 5-year fixed insured mortgage rate from mortgage insurance applications, plus 2%." This change is specific to insured mortgages (i.e. mortgages with a down payment of less than 20%) and takes affect on April 6. Do you...

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PM Orders Review of Stress Test

If you've been having a hard time getting approved for a mortgage since the stress test was introduced in 2018, you aren't alone. In fact, about 10% of buyers who would have been approved for a mortgage before the stress test find that they can no longer get into the home they were hoping for. This has caused problems in the market. Specifically,...

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Big Banks Dish Out Big Penalties

Big Banks Dish Out Big Penalties

If you're a first-time home buyer, you might have it in mind to pay off your mortgage as quickly as possible. The prospect of making extra payments from time to time probably seems great! But the reality is: there are penalties for paying off your mortgage sooner than agreed. And big banks dish out the biggest penalties of all. Thankfully, there...

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