As we count down the final days of 2017, we look back on a year that presented fresh challenges for the mortgage industry with the announcement of yet more mortgage rule changes.
While OSFI’s B-20 changes dominated headlines during the later part of the year, here are some of the other top mortgage newsmakers for 2017:
- OSFI Unveils New Stress-Test Rules
- Home Capital Stares into the Abyss
- BoC Raises Overnight Interest Rate
- M3 Mortgage Group Acquires VERICO
- CMHC Hikes Insurance Premiums
Rate Movements
After two years with the overnight target rate stuck at 0.50%, the Bank of Canada began a new rate hike cycle with quarter-point increases in July and September, with more hikes widely expected in 2018.
The most important benchmark for fixed-rate pricing is the 5-year government bond and in 2017 we were reminded of how fast 5-year yields can climb.
| Indicator | Year End | 2017 Change |
| BoC Overnight Rate | 1.00% | +50 bps |
| Prime Rate | 3.20% | +50 bps |
| Discount Variable Rate1 | 2.26% | +5 bps |
| 5yr Posted Rate | 4.99% | +35 bps |
| 5yr Discounted Fixed Rate1 | 2.95% | +38 bps |
| 5yr Gov’t Bond Yield | 1.86% | +78 bps |
| 5yr GIC2 | 1.48% | +3 bps |
| 30-day Bankers’ Acceptances | 1.37% | +57 bps |
| 90-day Bankers’ Acceptances | 1.46% | +57 bps |
Stock Moves
Finally, here’s a look at the performance of Canada’s big banks along with the public companies that make the majority of their revenue in the mortgage business.
| Big Banks |
Share Price |
2017 %Chg |
Annual Dividend |
| Bank of Montreal | $100.38 | +4% | $3.72 |
| CIBC | $122.20 | +12% | $5.20 |
| Laurentian Bank | $56.29 | -2% | $2.52 |
| National Bank | $62.38 | +14% | $2.40 |
| Royal Bank of Canada | $102.22 | +12% | $3.64 |
| Scotiabank | $81.03 | +8% | $3.16 |
| TD Canada Trust | $73.28 | +11% | $2.40 |
| Mortgage Companies | Share Price |
2017 %Chg |
Annual Dividend |
| Atrium MIC | $12.53 | +3% | $0.88 |
| Eclipse Resi. MIC | $10.08 | +2% | $0.76 |
| Equitable Group | $72.03 | +19% | $1.00 |
| Firm Capital MIC | $12.98 | -6% | $0.96 |
| First National | $28.79 | +7% | $1.85 |
| Genworth MI | $43.13 | +28% | $1.88 |
| Home Capital | $17.19 | -46% | — |
| MCAN Mtg Corp | $17.75 | +24% | $1.48 |
| Street Capital Group | $1.03 | -45% | — |
| Timbercreek Financial | $9.57 | +10% | $0.70 |
| Trez Capital MIC | $4.08 | -48% | $0.17 |
1 Discounted mortgage rates reflect estimates taken from the most competitive lenders’ rate sheets, as of December 31.
2 RBC’s 5-year non-redeemable GIC with monthly interest is used as a proxy for GIC rates. In reality, some lenders have to pay notably more on their GICs than RBC.
