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Five Must-Read Posts about Canadian Mortgages and Rates

Monday Morning Interest Rate Update for September 28, 2020

by David Larock

Canada mortgage rates

Last week was short on news relating to mortgage rates, so this week I’ll highlight five of my recent posts that are worth a read if you missed them the first time around.

To begin, now that mortgage rates have hit records lows, should you choose a fixed or variable rate? The post link below offers my latest take:

Fixed or Variable? Mortgage Rate Forecast: COVID-19 Edition

If you want to figure out what will happen with mortgage rates over the medium term, you need to know where inflation is headed. But that is easier said than done.

This next post explores the opposing views that inflationary pressures will remain subdued for an extended period or that inflationary pressures are poised to rise considerably:

Are We Headed for Too Much Inflation or Not Enough?

In its latest policy statement, the Bank of Canada (BoC) confirmed that it will keep its policy rate, which our variable mortgage rates are priced on, at its current 0.25% level for a long time.

The Bank is also buying at least $5 billion/week worth of government bonds, and this is helping to keep a lid on Government of Canada bond yields, which our fixed-mortgage rates are priced on.

The post below parses the BoC’s latest policy statement and explains why the Bank expects to keep rates low for a long time to come:

The Bank of Canada Re-Confirms That Ultra-Low Mortgage Rates Are Here to Stay

The BoC has said that rates are going to stay low for “a long time”, but how long is a long time?

If you’re in the market for a mortgage today, you are likely choosing between five-year fixed and variable rates, and if that is the case, it would be very helpful to know how the BoC’s “long time” will play out over the next five years.

The next post explains how the U.S. Federal Reserve’s statement provides important clues:

When Will Canadian Mortgage Rates Rise?

This final post provides a toolkit of information for anyone who is looking to purchase a property today.

It covers the following topics: pre-approvals, closing costs, bridge loans, mortgage payments, and the important terms and conditions in the mortgage contract fine print that you need to watch out for.

The Must-Have Mortgage Toolkit for Every Home Buyer

Finally, here is a chart showing my current five-year fixed and variable rates, depending on your transaction type and loan-to-value ratio.

The Bottom Line: Five-year fixed rates moved a little lower again last week while variable rates held steady. I expect that rates will either remain at their current levels, or, more likely, continue to inch down over the short term.

David Larock is an independent full-time mortgage broker and industry insider who helps Canadians from coast to coast. If you are purchasing, refinancing or renewing your mortgage, contact Dave or apply for a Mortgage Check-up to obtain the best available rates and terms.
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