Rates–Fixed, Variable or Both??
Filed Under Main Content · Tagged: Fixed Rate, People, Variable Rate
canadianmortgagetrends.com
Most people’s fixed or variable rate decision all comes down to how much they want to pay See full story on this topic »
Mortgage rates on the rise again
Filed Under Main Content · Tagged: Business Development, Canada Mortgage, Canadians, Cmhc, Debt Levels, Fixed Mortgage, Fixed Rate, Home Buyers, Housing Corp, Insurance, Insurance Products, Interest Rates, Mortgage Consumers, Mortgage Rates, New Survey, Vice President
Financial Post- A new survey says more than four out of five home buyers feel comfortable with their debt, but another hike in interest rates might get Canadians squirming next time they’re polled.
Canada and Mortgage and Housing Corp. surveyed 2,503 mortgage consumers between Feb. 11 and Feb. 28 and found 81% were comfortable with their current debt levels. However, the survey was done before three successive hikes in interest rates that have pushed the five-year, fixed-rate, closed mortgage from 5.25% to 6.25% in less than a month.
"Rates were low throughout most of the time [of the survey]," said Pierre Serré, CMHC vice-president of insurance products and business development, adding it was unclear whether the 81% figure might fall because of the hike…
Mortgage rates on the rise again
Five-Year Yields Hit Highest Since October 2008: Canada Credit – BusinessWeek
Filed Under Main Content · Tagged: Balance Sheet, Bank Of Commerce, Bloomberg Canada, Bond Market, Bond Yields, Businessweek, Canada Credit, Canadian Imperial Bank, Canadian Imperial Bank Of Commerce, Cash Bonds, Declines, Fixed Income Market, Fixed Rate, Imperial Bank Of Commerce, Mortgage Regulations, Strategist, Swap Transactions, Swaps, Toronto Banks, Treasuries
Bloomberg- Canada’s five-year bond yields rose to the highest level since October 2008 as banks hedged mortgages and the nation’s fixed-income market caught up to declines in U.S. Treasuries.
Canada’s home buyers are stepping up borrowing as they seek to beat pending changes to mortgage regulations and increases in interest rates. Banks that issue mortgages protect their balance sheet by selling similar-maturity securities in the secondary bond market or by making swap transactions.
“Banks are hedging seasonal mortgage flows, which is weighing on the five-year sector,” said Mohammed Ahmed, a rates strategist at Canadian Imperial Bank of Commerce in Toronto. “Banks are receiving a fixed-rate asset and to hedge that, they typically pay the fixed-rate in swaps, or sell cash bonds…”
Five-Year Yields Hit Highest Since October 2008: Canada Credit – BusinessWeek
Mortgage rates’ dream ride ‘almost over’
Filed Under Main Content · Tagged: Beginning Of The End, Canadians, Dollar Question, Fixed Rate, Harsh Reality, Housing Market, Longest Time, Mortgage Broker, Mortgage Rates, Paula Roberts, Quot, Rock Bottom, Upswing, Variable Rate Mortgages
Financial Post- For Canadians now accustomed to rock-bottom mortgage rates, a harsh reality looms.
Rates are officially on the upswing, an indication that the country’s housing market is finally poised to cool off and the beginning of the end to historically low rates.
It’s a move being closely monitored by those with variable-rate mortgages trying to cling to minimal monthly payments for as long as possible.
Is now the time to lock in to a fixed rate?
"That’s the million-dollar question," mortgage broker Paula Roberts said Monday. "We’ve had a great ride for the longest time. And we know the ride’s almost over…"
