January 27th, 2015

More From the Rate Front…

Borrowers got what they were asking for. It just wasn’t as big as they were asking for.

The major banks cut their prime rates by just 15 basis points today, to 2.85%. It’s the first time ever that Canada’s official bank prime will have changed by less than ¼% (at least back to 1935 when the Bank of Canada started publishing this data).

RBC showed leadership by being first out of the gate with its prime rate announcement. Then came BMO 50 minutes later, follow by the rest of the pack.

This all comes after TD Canada Trust worried borrowers last week, telling them it wouldn’t cut prime rate at that time.

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January 26th, 2015

CAAMP in the News…

With continued talk of Canadian housing imbalances, the evolving oil shock and the Bank of Canada’s surprise rate cut, there’s been no shortage of opinion on the consequences for borrowers.
 
For those who might have missed them, below are two related articles from www.Bloomberg.com that include comments from CAAMP President & CEO Jim Murphy:

January 24th, 2015

Rate Nuggets

Some rate news of note:

  • RBC led the banks this morning by trimming its posted 5-year fixed rate. It dropped 10 basis points to 4.84%, the first 5-year posted rate cut from any major bank since spring 2014. If other banks follow as expected, the benchmark qualifying rate will drop, making it slightly easier to get approved for variable and 1- to 4-year fixed mortgages.
  • Those looking to Canada’s top bank for leadership on prime rate will have to keep waiting. RBC cut its 3-, 7- and 10-year fixed rates as well, but left its prime rate at 3.00%.

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January 21st, 2015

The BoC’s Bombshell

Wait a minute. Weren’t rates supposed to go up this year?

If it wasn’t embarrassing enough to be a rate forecaster before, it is now. Today’s surprise Bank of Canada rate cut proves for the umpteenth time that “experts’” long-term rate predictions are not only futile, but potentially costly.

Here are 5 things to know about the Bank of Canada’s policy move:

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January 19th, 2015

Centum Launches Online Pre-Qualifier

Lead generation is the name of the game when you’re trying to grow a mortgage business. But leads are expensive, so when someone creates an innovative way to generate inexpensive prospects, it’s worth a look.

Centum, one of the top mortgage broker franchisors in Canada, says it has just that. It launched its “15-Minute Mortgage” widget today to all of its 2,300+ agents. The Web-based interface (one of the first of its kind) lets a homeowner pre-qualify themselves in just minutes.

Here’s how it works…

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January 15th, 2015

A Historic Day for Yields

This has been one spectacular swan dive in the 5-year Canadian bond yield. We ended Thursday at 1.01%, an all-time low and just a “beep” above the psychological threshold of one percent.

If you’ve been watching this waterfall in yields over the past two months, you may well be wondering, “If bonds lead fixed mortgage rates, when will we finally see some rate love from lenders?”

In the past, when long-term yields have moved 15-20 basis points, lenders have adjusted fixed rates accordingly. But today is a different world. The banks, which control over three-quarters of the mortgage market, will be “ruthless” at protecting earnings, analyst Peter Routledge told the Financial Post.

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News on Canadian mortgages, mortgage brokers, and mortgage rates.