Integrated Mortgage Planners
✕
  • Contact
  • About
  • Media
  • Privacy Policy
  • Blog
  • Rates
  • Mortgage Central
    First Time Home Buyer
    First-time Home Buyers
    Borrower Specific Advice
    Borrower Specific Advice
    Review of the Latest Canadian and U.S. Employment Reports
    Mortgage Calculators
    Review of the Latest Canadian and U.S. Employment Reports
    Mortgage Rate Updates
    Review of the Latest Canadian and U.S. Employment Reports
    Borrower Beware
    Review of the Latest Canadian and U.S. Employment Reports
    Product Commentary
  • About
  • Apply
Review of the Latest Canadian and U.S. Employment Reports
(416) 304 0100
Review of the Latest Canadian and U.S. Employment Reports
Call us
Review of the Latest Canadian and U.S. Employment Reports
Review of the Latest Canadian and U.S. Employment Reports
✕
  • Blog
  • Rates
  • Mortgage Central
  • About
  • Apply
  • Blog
  • Rates
  • Mortgage Central
    First Time Home Buyer
    First-time Home Buyers
    Borrower Specific Advice
    Borrower Specific Advice
    Review of the Latest Canadian and U.S. Employment Reports
    Mortgage Calculators
    Review of the Latest Canadian and U.S. Employment Reports
    Mortgage Rate Updates
    Review of the Latest Canadian and U.S. Employment Reports
    Borrower Beware
    Review of the Latest Canadian and U.S. Employment Reports
    Product Commentary
  • About
  • Apply
Review of the Latest Canadian and U.S. Employment Reports
(416) 304 0100
Review of the Latest Canadian and U.S. Employment Reports
Review of the Latest Canadian and U.S. Employment Reports

Review of the Latest Canadian and U.S. Employment Reports

  • Home
  • Blog
  • Monday Morning Mortgage Rate Updates
  • Review of the Latest Canadian and U.S. Employment Reports
Fed Confirms End Date for QE II
May 2, 2011
Interest-rate Compounding: A Devil in the Detail
May 11, 2011
Last updated on November 9, 2017
Categories
  • Monday Morning Mortgage Rate Updates
Tags

canada mortgage ratesLast Friday’s jobs report from Statistics Canada was a mixed bag. The headline number of 58,000 new jobs in April was an upside surprise, but most of the new jobs were part time (41,000), and public sector job growth continues to outpace private sector job growth, which is an unhealthy long-term trend. Ontario was the big winner with 55,000 new jobs, but again, 46,000 of those were part time. While this report continues some recent positive economic momentum and brings our overall full-time employment numbers back to pre-recession levels, our participation rate is still about 1% below capacity. While many analysts are using this report as further evidence that the Bank of Canada will start increasing short-term rates in July, 2011, I think the jury will  still be out until we get a better sense of what our second quarter GDP numbers look like. 

The U.S. non-farm payroll report was also released on Friday. It showed 244,000 new jobs, which is below the 250,000 to 300,000 needed to replace lost jobs and reduce overall unemployment (thus, the overall unemployment rate rose from 8.8% to 9%). While all of the gains were from private sector hires, many were part-time and 62,000 of these were McJobs (literally…McDonald’s went on a huge hiring binge). Meanwhile, the public sector shed another 24,000 jobs, contracting for the sixth straight month. While a growing private sector and shrinking public sector make for a good long-term trend, it also means that the U.S. private sector will be driving the Job Creation bus by itself for the foreseeable future. In other words, more tough times ahead.

Five-year Government of Canada bond yields continued to trend downwards last week and as expected, lenders began to drop their fixed rates. Five-year fixed-rate mortgages are back below 4% and credit unions are leading the charge. Our latest employment report didn’t move the market much, and spreads finished slightly lower on Friday to close out the week.

Lenders held their variable-rate discounts for another week, so prime minus .80% or better can still be had (for now).

The bottom line: The only way today’s super low variable rates will leave you better off in the long run is if you use today’s savings to pay off your mortgage faster. To better understand why, and to see just how much impact this technique can have, check out last week’s post called The Power of Prepayment.

I am 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 me or apply for a Mortgage Check-up to obtain the best available rates and terms.
Share
55

Comments are closed.

Dave the Mortgage Broker
Integrated Mortgage Planners
David Larock - Mortgage Broker
Integrated Mortgage Planners Inc.
DBA: TMG Integrated Mortgage Planners Inc.
FSRA License #12867
2 St. Clair Avenue West, 18th Floor
Toronto, ON M4V 1L5

(416) 304 0100  - Phone
(888) 406 8939 - Toll Free

Contact us
Useful links
  • Contact
  • About
  • Media
  • Privacy Policy

© 2023 Integrated Mortgage Planners Inc.