Most lenders have now moved under 6% on their best 5-year fixed rates. There’s still a way to go, however, before fixed rates return to their normal 1.10% spread over 5-year bond yields. 5-year yields are currently at 3.47%.
- Bankers Acceptance rates (which impact variable mortgage rates) have fallen from 4.70+% in December to just above 4% today. That’s the lowest they’ve been since April 2006.
- 60 Minutes shows how Americans are increasingly leaving their keys on their lender’s doorsteps. Howe St. Article
- Banks may start heavily scrutinizing powers of attorneys thanks to a recent court decision.
- Core inflation is at a 2-year low. That enhances the odds of a March rate reduction by the Bank of Canada.
- Stewart Hall, market strategist at HSBC Canada agrees. He says, “I don’t think anyone in Canada is particularly worried about inflation getting in the way of a March rate cut.”
- Canadian home resales will remain near record levels in 2008 says CREA.
- The Bank of Canada might lower rates 1/4% to 1/2% on March 4 says TD Securities’ economist Eric Lascelles.
- Moshe Milvesky, author of Canada’s best known interest rate study, says banks would probably lower variable-rate discounts instead of holding up their prime rates.
- AIG has relaxed the approval requirements of their new immigrant program. AIG Announcement
- AIG has also increased the maximum loan-to-value on their rental property program to 95%. 95% can’t touch CMHC’s 100% financing program, however. Now we’re waiting to see if Genworth also ups their income property LTV. Currently Genworth is at 90% but insurers have been following the pack pretty closely in terms of pricing and features. AIG Announcement
Careful with the fineprint on the AIG United Guaranty announcement …the increase in LTV for rentals to 95% is only for 1-2 units. I’m assuming that 1-4 units is still capped at 90%.
Hi Rob,
Thanks for the comments. That’s right. Similarly, CMHC’s 100% program also applies to 1-2 units.
Cheers,
Rob