A handful of mortgage lenders started trimming the discount they offer on variable rate mortgage last week.  They have gone from prime -.75% to prime -.65% and in some cases prime -.50%.  So far four out the of the top ten mortgage brokers lenders have decreased rates.  The reason behind the tighten in the discount rate is the spreads that the lenders make on the product.  The product is not as profitable to the lenders as it once was.
Read More

The Canadian Economy shrank in February for the first time in five months as the manufacturing sector suffered its biggest contraction since the worst stretch of the recession and the wholesale trade also declined.  The February numbers cast doubt on the notion that the Bank of Canada will start raising interest rates again before the summer even as it watches for signs of inflation.

TD bank announced today that it will be raising fixed term mortgages on Tuesday April 5^th.  Rates are expected to increase by .35% with the 5 year posted rate (used for qualifying 1 to 4 year fixed and variable mortgages) increasing to 5.69%.  So far no other lender has announced a rate increase however a lender never increases rates alone so expect all lenders to follow suit.
Read More

The next Bank of Canada meeting is in May.  The market is not expecting a rate increase.  After that the next meeting will be in July.

With the Canadian dollar riding high against the US dollar this will put pressure on Bank of Canada/Government to keep interest rates low.

Canada’s annual inflation rate fell slightly in February, giving the Bank of Canada room to keep interest rates low over the next few months, economists say.

Statistics Canada said Friday its consumer price index edged down one-tenth of a point to 2.2 per cent in February, with rising energy and gas prices keeping inflation just above the Bank of Canada’s ideal two per cent target.
Read More

Mortgage fixed rates edged lower yesterday with the averaging 5 year fixed dropping from 4.04% to 3.94%.  With the variable mortgage holding steady at 2.30%, this is good news for home buyers entering the Spring real estate market.

Report form CMHC

Housing starts will be in the range of 157,300 to 192,900 units in 2011, with a point forecast of 177,600 units. In 2012, housing starts will be in the range of 154,600 to 211,200 units, with a point forecast of 183,800 units.
Read More

The Bank Of Canada wanted to know what helps consumers get the best mortgage interest rate so they did a study among the top 10 mortgage lenders, below are some of the results
Read More