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.
Similar Housing Demand Conditions in Canada and US
Housing markets in Canada and the US are sizzling. Recent headlines have used superlatives to describe housing market conditions in both countries and the data do back this up. Still, a closer look reveals some interesting distinctions as well. Home price and sales metrics show that while the US market is hot, Canadas is hotter. For example, existing home sales, which make up the majority of overall sales in both countries, is well above historical averages, but Canadian home sales have outperformed. As of March 2021, home sales in Canada were 75% higher than the average over 2018 and 2019, while it was 13% above in the US. Likewise, home prices also spiked. In Canada, the average home sold was 32% more expensive than what it was a year ago, and it was 17% higher stateside.
From a high level, the list of commonalties across markets during the pandemic is longer than the areas of difference, particularly on the demand side. Perhaps the most influential demand-side driver has been historically low mortgage rates. Responding to the impacts of the pandemic, the Bank of Canada and the Federal Reserve slashed rates and enacted large quantitative easing programs early last year, resulting in a sharp drop in borrowing costs. Given that the US conventional mortgage rate is a 30-year rate compared to Canadas 5-year benchmark, borrowing costs fell faster in America as flight to safety flows lowered longer term yields at the onset of the pandemic.
CANADA HOUSING MARKET and new stress test
Canadian home sales took a turn in April 2021, declining by 12.5% (sa m/m) from the highest level on record in March 2021. Listings followed suit, falling by 5.4% (sa m/m). While both sales and listings decreased in April, the smaller decline in listings further eased the national-level sales-to-new listings to 75.2% from record high readings earlier this year (the highest being 91% in January). While this is a move in the right direction towards a better supply-demand balance, the ratio is still significantly higher than its long-term average of 54.5%. As a result of this persistent tightness in the housing market, the composite MLS Home Price Index (HPI) rose by 2.4% (sa m/m). This is a deceleration in price gains from paces observed over the last two months, owing in the most part to a slowing in prices for single-family homes and townhouses. Apartments, which had remained relatively close to pre-pandemic levels before accelerating earlier this year have maintained momentum in April.
Movements in the housing market this month continued to be broad-based rather than market-specific, as declines in sales were spread out across much of the country.
The Office of the Superintendent of Financial Institutions (OSFI) also announced that, effective June 1, the minimum qualifying rate for uninsured mortgages (i.e., residential mortgages with a down payment of 20 percent or more) will be the greater of the mortgage contract rate plus 2 percent or 5.25 percent.