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:

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.