Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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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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Fixed Vs Variable – No Clear Winner

Economists from BMO thinks that fixed rate mortgages have made a comeback in recent months. How much of this is actually applicable to an individual – remains debatable. The real truth about a mortgage is that it is unique for each of us. Each borrowers and lenders […]

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Yield Curve Showing Momentum – Fix it if you can!

zero-coupon-bond-yield-BOC-June-2013

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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Bank of Canada – Inflation will remain low in the near term

bank-of-canada-target

Today Bank of Canada decided to keep the Canadian overnight lending target rate at 1%. Team Poloz has decided that the time is not right to change the target rate. Their decision is based on various weaknesses in our economy. Household debt, weak inflation, stalled wages, poor […]

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Variable Rate Discounts Gaining Momentum Again

canadian-bond-yield-and-mortgage-rates

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 decided to play safe

Weal Global recovery

There are many reasons for rain or snow. Similarly Bank of Canada had many reasons to keep the low rate low. Overnight target rate is controlled and monitored by the Bank of Canada. It is a trend setter rate. Many other borrowing costs like banks prime rate […]

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No end in sight – Bank of Canada rate stagnation

Bank of Canada rate outlook

No one thinks that BoC is going to show any sign of movement tomorrow. We are going to see the stand still overnight rate for a while. Not only the low bond yield but also the long term promise of low short term rate also ticks the […]

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We are in love – with Fixed rate!

Canadians overwhelmingly declared that they now like fixed rate. The relationship with variable has become complicated in recent days. Obviously in this case the reason for this strong bond is Mr. Money. As fixed rate is lower than variable the attraction towards fixed is undeniable. With growing […]

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Factors to consider – Before locking in a fixed rate mortgage

It is very tempting to go for a fixed rate mortgage as the difference between fixed and variable rate is at its historical low. Experts are advising (with OAC) consumers or home buyers to select fixed rate – citing future risk of raising interest rates. Let us […]

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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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BoC overnight rate forecast – No change till end of 2013

It has been about two months since we looked at the rate forecast by the banks. Housing has taken some hit and as a result the outlook has changed. The interesting observation is that the lenders are somewhat converging on the issue. This rate forecast is important […]

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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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