In this morning’s scheduled rate announcement, the Bank of Canada left their overnight unchanged for the sixth straight time. This is exactly what was expected and any movement in either direction would have been quite shocking.   Four of the big six banks have been forecasting a cut by the end of the 2nd quarter, which would come on June 5th, the final scheduled announcement date for that period.  Will they be right?   In a press conference following this morning’s announcement, Bank of Canada governor Tiff Macklem stated that a June cut is “within the realm of possib ..read more

With expectations set for a significant decrease in mortgage rates over the next few years, the majority of mortgage seekers have been choosing shorter term fixed rate products. However, shorter term rates come at a premium. The shorter the term, the higher the rate.   Your essentially accepting pricier, higher rate mortgage with the anticipation of offsetting the additional cost with a much lower rate at the time of renewal. Essentially, it’s a calculated gamble–enduring a bit of financial discomfort now with the expectation of a more rewarding outcome later. It’s short-term pain fo ..read more

I’m sure you’ve seen all the TV commercials on reverse mortgages, which is basically a way to take equity out of your home without any income, and without ever having to make a single mortgage payment. Reverse mortgages are generally available to those aged 55 or older with significant equity in their homes. They can play a significant role in elevating the quality of life in your retirement years, while virtually eliminating financial worry, allowing you to enjoy a life of financial freedom. They are primarily available to seniors, however, many are not aware that there could be similar optio ..read more

In today’s eagerly awaited rate announcement from the Bank of Canada, they’ve decided to maintain their overnight rate. The overnight rate is what mortgage lenders use to set their prime rate, which directly influences those with variable rate mortgages and HELOCs.  Frankly, this morning’s announcement wasn’t a shocker and is exactly what we saw coming.  The countdown to rate cuts has begun, and like many of you, I’m on the edge of my seat waiting for it. But the big question remains:   When will rates drop?     Cuts From the Bank of Canada   The Ba ..read more

Last week’s inflation update from the U.S. was a bit of a letdown, casting a shadow over the prospect of a rate cut before the summer’s heat sets in. For those cuts to materialize, we’re banking on a steady decline in inflation rates. As the Canadian economy is closely tied to our friends to the south, negative news from their end tends to echo through our halls as well.  Economists on this side of the border were anxiously awaiting the Canadian inflation report which was released yesterday. Fortunately, it came back better than expected, giving us a reason to become much more optimistic ..read more

Before we can expect to see the ever so desired rate cuts to become realty, inflation has to fall. It was always expected that there would be some bumps along the way, and yesterday, we hit yet another one. The inflation report form the US was released which was up 0.30% in January, higher than what economists were expecting. You don’t need me to tell you that this is the opposite direction of what everyone was hoping to see.   Does this mean that the expected cuts from the Bank of Canada will be delayed?   The Bank has said repeatedly that they are not prepared to lower th ..read more

Given the significant increases we have seen to prime rate over the last 23 months, the term ‘variable rate mortgage’ has been the source of pain for many households. At the start of 2022, it was expected that the prime rate would increase by no more than 1.00% to 1.25%. Instead, we saw a staggering increase of 4.00% by the end of the year, followed by another 0.75% in 2023.   Forecasts can and do change, sometimes for the better and sometimes for the worse. In early 2022, it was for the worse. Much worse.   It’s always understood that there is additional risk with a variab ..read more

The Bank of Canada is expected to start cutting their rate as soon as April 10th of this year. While it’s not certain, it sounds promising. The big six banks are all forecasting cuts between 1.00% and 1.75% by the end of this year, followed by further cuts in 2025.   When it becomes more apparent that the cuts will be imminent, fixed mortgage rates will drop in anticipation. They do not need to wait for the Bank of Canada to cut their rate.   For this reason, more are starting to ask about 1 year fixed rates, which currently range from 6.64% for an insured mortgage to 7.04 ..read more

As expected, the Bank of Canada maintained their overnight rate in their first scheduled rate announcement of the year. It’s now been six months since the last hike. The BoC remains concerned about inflation risks, however, they are still expecting to reach their inflation goal of 2.00% at some point in 2025. They have stated on numerous occasions that they are not prepared to lower their rate until they are convinced that they’ll achieve this goal.     Timeline for Expected Rate Cuts   Despite last week’s disappointing inflation surprise, economists are expecting to s ..read more

If you’ve been keeping even a casual eye on the mortgage market, you’re likely aware of the chatter about potential rate drops to come at some point this year. Naturally, we all aim for the best deal, seeking to lock in the lowest possible rate. In a market where rates are expected to fall, it’s common for people to delay their decision to ensure they are snagging the lowest mortgage rate possible. This cautious approach has led many to become vigilant market watchers, patiently waiting for that perfect moment to lock in their mortgage rate. While this sounds like a good idea in theory, it can ..read more