Canada Mortgage News

Canada Mortgage News2017-09-13T16:33:54-06:00

Bank of Canada Increases Qualifying Rate

The bar is now higher for homebuyers to qualify for mortgages in Canada after the central bank raised a key metric used in stress tests that determine borrowers' eligibility. The Bank of Canada raised the conventional five-year mortgage rate from 5.14 per cent to 5.34 per cent after all Big Six banks raised their posted five-year fixed mortgage rates in recent weeks. The central bank qualifying rate is separate from [...]

May 11th, 2018|

Nearly Half of Canada’s Mortgages Up For Renewal in 2018

Nearly half of all existing mortgages in Canada will need to be renewed in this year, substantially more than in prior years, according to a new report, amid rising interest rates and new rules that make it tougher for some borrowers to shop around. A CIBC Capital Markets report says an estimated 47% of all existing mortgages will need to be refinanced this year, up from the 25% to 35% [...]

May 1st, 2018|

RBC Hikes Mortgage Rates

Royal Bank of Canada, Canada’s biggest lender, on Thursday said it had lifted the posted rates on some of its fixed-rate mortgages, following the lead of its biggest rival Toronto-Dominion Bank on Wednesday. The move will make it even harder for borrowers to obtain home loans, coming after Canada’s banking watchdog introduced new rules at the start of the year compelling banks to test if borrowers can afford to repay [...]

May 1st, 2018|

TD Posts Biggest Mortgage Rate Increase in Years

Toronto-Dominion Bank has lifted its posted rate for five-year fixed mortgages by 45 basis points to 5.59 percent as government bond yields touched their highest levels since 2011 this week. “It’s a big move, the biggest move in years,” said Rob McLister, founder of, a mortgage comparison website. “There’s a lot of reasons why that could be -- maybe they’re taking a position on rates going forward, which is [...]

April 27th, 2018|

Bank of Canada Maintains Rates

The Bank of Canada today maintained its target for the overnight rate at 1 ¼ per cent. The Bank Rate is correspondingly 1 ½ per cent and the deposit rate is 1 per cent. Inflation in Canada is close to 2 per cent as temporary factors that have been weighing on inflation have largely dissipated, as expected. Consistent with an economy operating with little slack, core measures of inflation have [...]

April 18th, 2018|

The Growth of Private Mortgage Lending

Getting a mortgage from a bank or a non-bank lender has become a bit more challenging. With the recent introduction of new mortgage rules, lenders have had to tighten their qualifying guidelines. The new mortgage rules have also impacted those who want to refinance their mortgage loan. And at renewal time, if you want to increase your existing loan, change your amortization or shop for a better rate, the new [...]

February 9th, 2018|

Bank of Canada Raises Rates

As predicted, the Bank of Canada opted to increase its target for the overnight rate today to 1.25%, up from 1%. It's reasoning? Strong recent data, close-to-target inflation and an economy that's operating pretty much at capacity. While things are looking up right now, however, the Bank doesn't expect it to stay this strong for long. It predicts real GDP growth will slow to 2.2% in 2018 and 1.6% [...]

January 17th, 2018|

Buying a House in 2018?

Buying a house should be exciting but it can get pretty stressful at times. Now, with new mortgage rules, that stress might get worse. You may worry you won’t qualify or you’re not sure if your down payment is enough. Some may not even know about the mortgage rule changes and the impact it might have on them. There may be uncertainty about house prices and about interest rates. Not [...]

January 10th, 2018|

Bank of Canada Holds Rates

The Bank of Canada today maintained its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. Inflation has picked up in recent months, as anticipated in the Bank’s July Monetary Policy Report (MPR), reflecting stronger economic activity and higher gasoline prices. Measures of core inflation have edged up, in line with a narrowing [...]

October 25th, 2017|

How New Mortgage Rules Change Your Qualification

New mortgage qualification guidelines include a stress test for uninsured mortgages or mortgages with more than a 20% down payment or 20% in existing equity. This new stress test means that borrowers will be qualified at the greater of their contract rate + 2% or the five year benchmark rate published by the Bank of Canada, which is currently 4.89%. Here is how that will affect you the next time [...]

October 20th, 2017|
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