Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Bank of Canada – Overnight Rate set to 0.5% – After 5 years

Bank of Canada today reduced it’s target overnight rate one more time. The bank surprised many experts in last January by lowering its target rate, now once more, the bank decided to cut the rate by quarter percent point. Like gasoline price, prime rate do not appear […]

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Growing inflation, how much worried should you be?

Canadian 5 year Bond Yield - One month trend - June 2014

Last week Canadian consumer price index made a lot of headlines, by reaching 2.3% in May 2014. For the first time in two years that inflation went about 2% mark. As a result all the investors thought that this is a clear indication of future rate hike. […]

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CMHC abandons mortgage loan insurance for condominium development.

Canada Mortgage and Housing Corporation announced that it is bringing in two changes in its mortgage insurance business. The Crown Corporation has been struggling in many fronts. While it is not exactly in a financial trouble but it has drawn critics from many areas. Some of them […]

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Bank of Canada has no news for Canadian borrowers

Canadian latest overnight lending rate and Prime bank rate - BoC
Canadian Interest Rates Bank of Canada, as usual, once more decided not to move its overnight target rate. The bank, Canadian central bank that is, controls overnight lending or short-term lending between Canadian financial institutions using target overnight rate. A low overnight target rate ensures that the [...]Read more

Canadian interest rate on a path to where?

Overnight Rate outlook SOURCE, BMO, TD, RBC, CIBC, Scotia

The weakest growth potential in the Canadian financial landscape belongs to Canadian overnight interest rate. Bank of Canada chief Stephen Poloz thinks that inflation rate is not going to show any sign of life this year. For inflation rate to return to its healthy self may take […]

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Home buyers mortgage choices – in pictures

Home Buyers Rate Choices

The result of a survey conducted by CIBC are presented here in charts. The overall home buyers preference may have nothing to do with individual situations. Each situation is different and should be treated on their own merits.

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Bank of Canada maintains the target interest rate at 1%

Canadian prime rate and Bank of Canada overnight rate - April 2014

Bank of Canada today announced that it will maintain the key interest rate at 1% till first week of June. The bank expects that the economic conditions will improve in near future and slowly inflation will head North. For now housing is still in a very tricky […]

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Interest rates – are they really going up?

Canadian five years bond yield - 2014- April
In the broader residential mortgage perspective there are two types of interest rates. One is variable interest rate, another is fixed interest rate. Variable rates depend on bank prime rate which is supposedly anchored to Bank of Canada overnight lending rate. The central bank’s target rate is [...]Read more

Mortgage defaults – remained stable for a while

Actual five years fixed mortgage rates offered by brokers

Apart from Alberta, numbers of mortgage defaults or payment misses have remained steady for last two years. Average Canadian mortgage arrear rate has stabilized close to 0.3%. Actual mortgage rate stayed almost flat during this period. That suggests a close correlation between the two – interest rate […]

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Bank of Canada likely to maintain current course

The Target Overnight Rate is important to a borrower because it is somewhat loosely tied to the Prime Lending Rate set by the lenders. Today the Canadian Central Bank will once again announce its target for the Overnight Lending Rate till 16 April 2014. Experts are not […]

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How to deal with future higher rate – Lenders re-take on penalty (may be?)

A lender makes money from interest on the loan and/or early breakage penalties paid by a borrower. If a borrower is stubborn not to pre-pay the mortgage before its maturity then the banks only earning is from the interest and some fees. Not all the home owner […]

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Bank of Canada – Target Overnight and Qualifying rate standing still

Bank Of Canada Benchmark Five Years Bond Yield Vs Qualifying Rate December 2013

in Soon, Bank of Canada will announce its target overnight rate for next month and a half. All the speculations are pointing towards no change. Recent weakness in Canadian currency is not a reason for the bank to be alarmed and it is a good thing for […]

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