The Bank of Canada (BoC) left its overnight rate unchanged last week, which was widely expected, and that means that variable mortgage rates should continue to hold steady. (I say “should” to allow for the possibility that another lender follows TD Bank and arbitrarily raises its prime rate for its entire book of existing variable-rate borrowers.)

The Bank of Canada (BoC) meets this week and while the Bank is not expected to move its policy rate, it will also release its latest Monetary Policy Report (MPR). I read the MPR it with interest because it gives us the Bank’s views on the state of our economy and includes projections of where it thinks our economic growth will be headed over the next several years. In this most recent version, the key question for anyone keeping an eye on mortgage rates is how the recent uptick in our economic data will impact the Bank’s dovish rate view. In next week’s post, we will answer that question by taking a detailed look at the BoC’s January MPR. Five-year GoC bond yields rose by one basis point […]

To kick off 2017, in today’s post we’ll take a look at how the world’s largest economies are likely to impact Canadian mortgage rates in the year ahead. While it may not seem obvious at first glance, events in far off places can and do impact the rates we pay on our mortgages.

In today's post I explain why the Fed's first policy rate increase in years should increase the appeal of variable-rate mortgages for Canadian borrowers.

Last week the Bank of Canada (BoC) announced that it would leave its overnight rate unchanged, as was widely expected, and in its accompanying statement the Bank explained how current economic momentum, both at home and abroad, has contributed to its cautious overall view. Here are the highlights from the BoC’s latest statement, along with my take on the implications for both our fixed and variable mortgage rates.

The futures market is now giving 94% odds that the U.S. Federal Reserve will raise its policy rate when it next meets on December 13, 2016. While there is still much debate about whether the U.S. economy is ready for higher rates, the Fed seems determined to follow through, if only to restore some policy flexibility for fighting the U.S. economy’s next recession. This sets up an interesting test for Government of Canada (GoC) bond yields, which have moved in virtual lockstep with their U.S. equivalents since the start of the Great Recession in 2008.

In a little over a week, on Wednesday, November 30, the next round of mortgage-rule changes will take effect, and while we can’t predict exactly what the impacts will be for every lender, we do know that our mortgage market will begin to look different.