Transaction Types: Purchases, Refinances, Home Equity Lines of Credit, Home Equity Loans, Debt Consolidation, Construction Financing, 2nd Mortgages, Reverse Mortgages
Financing Options: Banks, Credit Unions, Trust Companies, Non-Bank Lenders, Monoline Lenders, Alternative Lenders ("B" Tier), Mortgage Investment Corporations, Private Lenders
Property Types: Owner Occupied, Vacation Property, Investment Property, Raw Land
Special Programs: Self Employed, 1st-Time Buyers, Bruised Credit, New to Canada, Non Residents, Spousal Buyouts, Debt Consolidation, Net Worth Lending, Interest Only Payment Mortgages, Purchase and or Refinance with Improvements, Flip Properties, Prepaid Mortgages, Rent to Own, Power of Sale Rescue
Transaction Types: Purchases, Refinances, Lines of Credit, Debt Consolidation, Construction Financing, 2nd Mortgages
Financing Options: Banks, Credit Unions, Non-Bank Lenders, Alternative Lenders ("B" Tier), Mortgage Investment Corporations, Private Lenders
Property Types: Owner occupied, investment property, Mixed Use, Apartment Buildings, Office Space, Industrial Space, Retirement Homes, Student Housing, Rooming Houses, Raw land, and Everything Else
COMMERCIAL FINANCING CMHC 5+ UNITS
Program Options: Rental Property, Student Housing, Single Room Occupancy, Retirement Homes, Affordable Housing, Construction
Please Note: We will be the first person to tell you that while it is great to be approved for a loan amount, it is not always great to accept what you are being offered for a multitude of reasons. Consumers need to be careful with all the fancy marketing out there as It's a fact that not every transaction that gets done should be done. Even though regulations require that you are provided with full disclosure of terms, rates, fees, and that your application is being presented to a lender accurately and you are being provided with the best options etc...it does not always happen the way.
Our Word: We take an in-depth look at your situation, which costs you nothing but your time to determine what your options look like. There is never any pressure to move forward with anything, and any transaction that we do together is always in your best interests...not mine.
Don't hesitate to reach out if you think I may be able to help - that is what we do.
Please Note: all Mortgage Rates listed on this website reflect the best available rates for the purchase of an owner-occupied property with default Mortgage Insurance amortized over 25 years. To confirm what rate we can offer you, please reach out to me at your convenience, and we can discuss it.
BLOG / NEWS Updates
What dictates changes in interest rates ?
MORTGAGE RATES (FIXED AND VARIABLE) how does it work?
Why does the 5-year bond yield matter?
Fixed mortgage rates are based indirectly on the government of Canada bond yields. Thats why the most popular mortgage term in Canada (the 5-year fixed) closely follows the 5-year bond yield. While it can deviate for short periods, the spread (difference) between 5-year yields and 5-year fixed rates always come back to their long-term average.
5-year Yield History
All-time high: 18.78% (September 1981)
All-time low: 0.276% (March 2020)
March 3rd, 2021 0.84%
Canada 5-year Yield Forecast 2021
The median average forecast for the government of Canadas 5-year yield is 0.80% by year-end 2021. That is 0.41 percentage pointsi.e., 41 basis pointshigher than it was at the end of 2020 (it closed 2020 at 0.39%).
The median forecast for year-end 2022 is 1.30%.
These forecasts are derived from the individual 5-year yield forecasts of Canadas Big 6 banks, as of January 20, 2021, and are subject to change.
How Does the 5-year Yield Affect Fixed Mortgage Rates?
Discounted 5-year fixed rates are typically 150+ basis points above the 5-year yield. This spread, as its called, can vary anywhere from under 100 to over 200 in times of financial stress.
Does the 5-year Yield Affect Variable Rates Too?
Lenders set variable rates as a discount to prime rate. Prime rate generally changes with the Bank of Canadas overnight rate.
The 5-year yield does not directly impact variable rates but it does reflect market sentiment, which can presage changes in Canadas overnight rate.
CANADA HOUSING MARKET: THE FALL’S RISE
Canadian home sales rose by 8.6% (sa m/m) in October, the largest increase since July 2020. Listings moved in the same direction, albeit by a much smaller 3.2% (sa m/m). The larger increase in sales carried the sales-to-new listings ratio, an indicator of how tight the market is, to 79.5%, up from 75.5% in September, and much higher than its long-term average of 54.5%. As a result, the composite MLS Home Price Index (HPI) rose by 2.7% (sa m/m)the third consecutive acceleration, and the biggest, after months of price gains deceleration. Single-family homes and apartments were the main drivers of Octobers price gain.
Movements in the market were broad-based, with the uptick in sales spread out across much of the country. Sales went up in 28 of 31 local markets we track. Kitchener-Waterloo recorded the largest increase (29.5% sa m/m) followed by Thunder Bay, Kingston, Okanagan-Mainline, and Winnipegall recording increases of over 15% (sa m/m). While these are mainly suburban secondary markets, primary markets are also showing signs of strength, with Torontos sales going up by 9.9% (sa m/m) and Montreals and Vancouvers by 7.8% (sa m/m). Octobers national level of sales is historically strongthe second highest on record for October after October 2020, and a remarkable 40% (sa) higher than the 20002019 October-average.
Excess Household Savings and Implications for Inflation in Canada
Canadians have built up a record amount of savings during the pandemic. By some estimates, it totals around $300 billion. This stockpiled spending firepower has fueled concerns that inflation could be higher and more persistent than currently thought, especially at a time of growing supply-side constraints.
However, there are a few reasons to suggest the inflation impulse from excess savings may not be as hefty as some believe. The amount of funds in highly liquid cash form is significantly lower than the headline estimate, consumers are likely to gradually draw on their savings to spend, and the reorientation of outlays from goods to services will dampen price pressures.
Still, the amount accumulated in savings is large and unprecedented. This represents an important upside risk to the Bank of Canadas consumption and inflation forecast in the October Monetary Policy Report.