Variable-rate mortgagors are now a little happier. The big 6 banks have each fallen into line and lowered their prime rates to 4.00%
7 of 24 economists surveyed by Bloomberg predicted the 1/4% BoC cut yesterday. 13 forecast a 1/2% cut.
Some economists, like Scotia’s Derek Holt, are now forecasting a 1/2% rate cut at the Bank of Canada’s next meeting on December 9. If he’s right, it would take the overnight rate below 2%–something that hasn’t happened since 1960. The record low is 1.12% in 1958–a time when it was based on treasury yields rather than actions by policy makers. (Bloomberg)
“If you are still looking for the Prime – .90 variable mortgage that you got on your property last year and your crying because no one is offering it – Get over it and learn to adjust to the new realities of the marketplace!” – Canadian Mortgage Team’s Peter Kinch
The government is buying back another $7 billion of Canadian mortgages on Thursday after strong demand in last week’s auction. (Globe)
Skitish commercial lenders may not be loosening up the reins anytime soon. 57% of real estate executives surveyed predict that Canada’s commercial mortgage market will be “substantially or moderately” underfunded next year.
36% of new immigrants take out a mortgage to buy a home within one to three years, according to RBC. (Investment Executive)