We’re about to turn the page on 2018, and many may feel not a moment too soon.
Climbing fixed rates weren’t the only thing making mortgages less accessible in 2018. This was the first full year to measure the impacts of new federal mortgage rules. Provincial policies in B.C. and Ontario also contributed to putting the brakes on the country’s housing momentum.
Those and other headwinds marked an eventful 2018. Here’s a rundown of the year’s top stories, rate movements and mortgage-related stocks.
TOP STORIES OF 2018
THE YEAR’S TOP DEALS & LENDER MOVES
BMO’s deep prime – 1.00% variable rate spring promo
TOP NEW PRODUCT OFFERINGS
The foundation for Canadian interest rates is the overnight rate. It ended the year 0.50% higher than where it began.
The most important benchmark for fixed-rate pricing is the 5-year government bond, and in late 2018 we were reminded of how quickly 5-year yields can tumble.
|BoC Overnight Rate||1.75%||+0.75%|
|Discount Variable Rate1||2.92%||+42 bps|
|5yr Posted Rate||5.34%||+35 bps|
|5yr Discounted Fixed Rate1||3.49%||+47 bps|
|5yr Government Bond Yield||1.88%||+2 bps|
|30-day Bankers’ Acceptances||2.25%||+84 bps|
|90-day Bankers’ Acceptances||2.24%||+72 bps|
And 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.
|Bank of Montreal||$89.34||-11%||4.57%|
|Royal Bank of Canada||$93.53||-9%||4.28%|
|TD Canada Trust||$67.86||-8%||4.03%|
|Eclipse Resi. MIC||$8.69||-14%||8.56%|
|Firm Capital MIC||$13.11||+0.5%||7.09%|
|Home Capital Group||$14.45||-13%||—|
|MCAN Mtg Corp||$13.39||-25%||10.04%|
|Street Capital Group||$0.56||-46%||—|
|Trez Capital MIC||$0.54||-86%||—|
1 Discounted mortgage rates reflect the average advertised rates of Canada’s top super brokers, as of December 31.