Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Rate Outlook – Brief summary

We all know that the market is very volatile right now. Among all those volatilities there are certain indicators those are pointing towards a rate rebound. The short term interest rates like variable rates will go up in 2015 according to RBC Financial Market Forecasts. It has

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Bank of Canada issued 50 years bond

Ultra long term bonds that will mature in the end of 2064 were issued by the Government of Canada with a yield of 2.96%. According to the press release by the government – there are two major benefits – one is low cost long term refinancing and

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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 isRead more

Lowest qualifying rate in recent history – 4.99%

Variable rate qualifying rate drops again

Many lenders are still qualifying borrowers with an above 5% interest rate. According to Bank of Canada the lending rate (Conventional mortgage – 5-year) stands at 4.99%. The same rate is generally used to qualify a borrower who is seeking less than 5 years fixed terms or

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Rates (fixed) are taking a nosedive – Can’t be at any better time

Please don’t let the headline fool you. Variable rate discounts are drying up a bit too. So, when fixed rates are descending then variable rates are running towards an opposite direction. Bond yields are sinking like a stone in water. Obviously recent share market hiccup forced the

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Bond yields are slipping away – Mortgage Rates – not so much

Canadian Benchmark bond yield - five years - Bank of Canada

Since Bank of Canada declared that it has no intention to kick start the bullish run for the overnight rate – the bond market started to show strength. Our expectation from the debt deal in US was that it may return the bond yields to their past

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Watch the fixed rate – US Debt Ceiling deal is done (for now)

Canadian bond yield for five years goverment bonds. October 2013

The politicians in United States have reached a deal to end the latest political fiasco on the debt ceiling. (Somewhat like spouses quarrelling over whether to increase the limit on the credit card) As a result the fear of US default is pushed back till February 7th.

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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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US deadlock – Effect on Canadian Mortgage Market

The debate in US congress is still raging if to pass the law that funds several government programs. The existing law expires tonight and the political tug-of-war continues with the life of government employees at stake. This debate is not the end. Next political showdown will be

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Five Years Bond Yield Fell Below 2%

Last Friday, Canadian five years bond yield went just below 2% mark. It fell about 15 basis points in just ten days. Not a significant drop but the rate of drop was noticeable. The market was waiting for the Federal Reserve’s announcement and then bonds made a

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No easing of quantitative easing – not yet

The US Federal Reserve Chairman Ben Bernanke did not want to withdraw stimulus from the market. There were recent speculations that feds may start to tighten the market soon – but that is not happening now – not till end of this year. According the US Federal

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A look into mortgage prepayment penalty – as a MBS investor

Paying penalty to break a mortgage term is not a pleasant experience. You have probably experienced the pinch once or twice during your homeownership. It is interesting to see how the penalties decide pool types on mortgage backed securities. The NHA mortgage backed securities guide speaks a

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