If you’re a homeowner and need a mortgage approval, get it in soon. If you’re a broker who’s floating a rate for a client, take note.
TD has hiked rates 0.35% on 3-5 year fixed mortgages, effective tomorrow. Expect other big banks to follow.
TD also reduced their discount on a variable mortgage to zero!
On the short side of the rate curve, TD did the opposite and cut their 1-year rate by 3/10%.
With all that is going on, is it wise to lock in to a 10yr fixed 5.5%? There is so much uncertainty!
For comparison, what did their discount used to be for variable rate mortgages?
Hi Lin, 5.50% is an exceptional deal for a 10-year. There might be better out there however. Call us or any mortgage planner for more info.
Hi Andrew, Yesterday, TD’s advertised variable was 4.40%. Now it’s 4.75%.
Update: BMO just raised as well by over 1/3%. Link
We’re awaiting the other banks to follow in line.
Cheers,
Rob
I find your articles quite interesting and informative. I was wondering if you could give your impressions on mortgage lending conditions in the last few weeks (i.e. effect of recent credit contraction).
– Have lenders tightened their criteria for properties and borrowers?
– Is the market as liquid or do you find less funds available in the marketplace?
– Are second and third tier lenders (non-banks) still offering significant rate differences to the major banks?
– Are you seeing many zero down and 40 year amortization applicants rushing to beat the deadline?
Hi Roger, Thanks for the reading. Per your questions…
1. Have lenders tightened their criteria for properties and borrowers?
We haven’t seen too many guideline changes in the last few weeks. Some of the remaining lenders with 100% financing and 40-year amortizations have announced the termination of these programs. But that’s in keeping with the new rules starting on Oct. 15.
The biggest industry change has been the elimination of variable-rate mortgage discounts at many lenders.
Maybe some other brokers can comment on this further if they have noticed any other significant developments.
– Is the market as liquid or do you find less funds available in the marketplace?
There are less funds at good rates available today than two weeks ago.
– Are second and third tier lenders (non-banks) still offering significant rate differences to the major banks?
By “differences” I’ll assume you mean “discounts.” In that case, for fixed rates the answer is yes. For variable rates no.
– Are you seeing many zero down and 40 year amortization applicants rushing to beat the deadline?
More than usual yes.
– Rob