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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Prime -1% variable rate mortgage is finally back

1.99% variable rate is back in Canada

Investor’s Group yesterday announced that they are introducing 101 basis points discount over prime rate on three years variable rate mortgages. That translates to 3% (Prime) minus 1.01% equals to 1.99% interest rate for three years – provided that prime rate does not change. Before 2010, Prime

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Yield Curve Showing Momentum – Fix it if you can!

Zero coupon yield curve may not be an important chart for our daily schedule but when you are deciding what to do with the future of your mortgage then it comes handy. Yield curve is a reflection of the mind set of bond investors. It shows what

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Variable Rate Discounts Gaining Momentum Again

The story of variable rate mortgage has been like an ignored person for quite a while. The high discounts were long gone and until recently we were living with few BPS off here and there. Brokers were not making much off Variable Rates either. So, it was

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Bank of Canada – Factors influencing Overnight Rate

The central bank is not going to pull any surprise out if its hat this time.  A recent Reuters poll showed that Bank of Canada is not likely to increase its interest rate till 2014. The decision to change the rate depends on many factors and Canadian

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Fixed or Variable – no clear winner

You have heard so many times about risk and stability aspects of variable and fixed mortgages. You also did your research to understand the two and yet you remained as confused as you were. Do not blame yourself for the confusion. As a matter of fact most

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Bank of Canada may step back – So What! – History may repeat itself.

Many financial analysts are predicting that probably BoC would not make a move till mid-2013. Some forecasters are bit more optimistic; they are saying that in future the bank may lower the target rate by 0.25%. Variable Rates appear to be very promising recently. So, a rate

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Variable Rate Mortgage – Discounts are Making a Comeback

Bond yield touched the bottom few days ago. In a reaction to that event – fixed rates were reduced by some lenders. Lately we do not see much movements in variable rate side. That front is very quiet. Currently we are all about fixed rate mortgages. Since

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Bank of Canada probably will not hike rate till end of 2012 – Reuters Poll

A poll result published by Reuters today says that Bank of Canada is not seen to be raising interest rate till end of 2012. This is good news for the borrowers who are in variable rate and have discounted variable rate. This is not so good news

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Variable rates going up – Disappearing Discounts

Variable discounts are vanishing fast from the market. As Mark Carney was predicting a stable short term rate scenario few days ago, some lenders were taking notes. As of now Scotia’s web site still says that it is offering Scotia Flex Value Mortgage – Closed 5 Year

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Fixed rate and variable rate, dramas and dilemmas.

Isn’t it very interesting to study that a fixed rate mortgage is so close to variable rate? Historically, Variable rates were below fixed rate by at least one or more percentage point. Now the gap is so narrow that often it is very hard to explain a

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BOC may be raising rate at a slower pace in 2012

A Bloomberg survey found that most economists expect BOC to stay at the sideline till 2012. The forecast for overnight lending rate stands at 1.75% by the end of 2012. In a contrast to the popular believe of no rate reduction in future, the report also indicated

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