mortgage rates

[NoBrakes!]

Renewing mortgage, looking for rates. We were offered 2.49% on 3 year fixed by ATB (my current institution). any better out there?

 

[smokindave]

Stay away from banks and credit unions.
I got the best rate from a mortgage broker.


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[Rbrduk]

https://www.snowandmud.com/just-abo...urrent-mortgage-rates.html?highlight=mortgage
Try a search. there are a few threads started.

 

[X-Treme]

If you want a number for a great broker, pm me. She did my entire mortgage via text/fax. Never even met her until deal was long done and we were already moved in.

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[Summitric]

we just renewed our mortgage and locked in for only 3 years... did open, floating mortgage before, but the rates will be going up soon.... very soon apparently

Signs outside the Royal Bank of Canada office towers at the north west corner of Front St. West and Bay St. on March 30 2015. (Fred Lum/The Globe and Mail) financial services
[h=1]RBC set to raise mortgage rates Add to ...[/h]TAMSIN McMAHON - REAL ESTATE REPORTER
The Globe and Mail
Published Tuesday, Jan. 05, 2016 6:30PM EST
Last updated Wednesday, Jan. 06, 2016 11:51AM EST

Royal Bank of Canada is set to raise rates on several of its mortgages, the latest in a series of changes to the mortgage industry that could help cool the housing market this year.
Starting Friday, the bank said it planned to increase rates on fixed mortgages of between two and five years by 10 basis points. (A basis point is 1/100th of a percentage point.) RBC’s five-year variable rate will increase by 15 basis points.
The move reflects RBC’s discounted rate specials given to customers who qualify, and pushes its five-year fixed rate up to 3.04 per cent. No other major Canadian banks announced matching rate increases on Tuesday, although lenders often closely follow each other in changing mortgage rates.
RBC’s move comes amid sweeping changes by federal regulators last month to curb soaring home prices in cities such as Toronto and Vancouver, including hikes to minimum down payment rules, higher costs to lenders who securitize and sell their federally insured mortgages and a proposal by the Office of the Superintendent of Financial Institutions to require banks to hold more capital against some mortgages.
In an e-mailed statement Sean Amato-Gauci, RBC’s senior vice-president of home equity financing, said rate increases weren’t a response to the recent federal rules changes, but “reflect a number of factors (beyond the bond yield), including changes in market conditions driving increased short-term funding costs and long term/wholesale funding costs.”
Funding costs to mortgage lenders have increased in recent months amid intense competition for deposits and from investors who have started demanding greater risk premiums for bank debt.
But the recent regulatory changes, which have yet to take effect, are also putting pressure on banks, said Robert McLister, a mortgage planner at intelliMortgage Inc. and founder of RateSpy.com. “To a certain extent lenders are pricing that in, in advance,” he said. “These are real behind-the-scenes factors that are inflating lenders’ funding costs.”

• RY-TRoyal Bank of CanadaLatest Price$71.67
  -1.15
  (-1.58%)
  
• RY-NRoyal Bank of CanadaLatest Price$50.88
  -1.19
  (-2.29%)
  
• Updated January 6 3:44 PM EST. Delayed by at least 15 minutes.

 

[Bogger]

I just signed a 5 year closed at 2.69%.... I wanted better but couldn't make it happen without the help of a broker so I caved.

 

[powder junkie]

Got 2.05 back in 2010 and renewed it couple months ago at 2.15. Both 5 yr open variable with scotiabank. Our lady is great to our family.

 

[Bnorth]

That's not a bad rate but try for 5 years. Interest rates will be going up in the next year. US Federal Reserve is upping rates and that will drive mortgage rates up in Canada as well. I expect mortgages to be at 5% within two years.

 

[Bogger]

I'm hoping the remain below 6% for the next 5 years..... otherwise I would have been better off to lock in for 10 years at 3.84%

That's not a bad rate but try for 5 years. Interest rates will be going up in the next year. US Federal Reserve is upping rates and that will drive mortgage rates up in Canada as well. I expect mortgages to be at 5% within two years.

 

[Bnorth]

I'm hoping the remain below 6% for the next 5 years..... otherwise I would have been better off to lock in for 10 years at 3.84%

I'd like that too but reality is they will go up. Bank of Canada will probably drop rates again as our economy is atrocious but with the US already upping theirs lending rates will rise sharply.

 

[Bogger]

I'm sure they will, how much is the question...I read up on the US impact on our rates and even had a frank discussion with my account manager. In the end the 10 year is still more risk than I was willing to take, a lower rate on a higher balance swayed me. If I do end up having to renew at over 6% 5 years from now it will end up costing me more unless I pound down my principal over the next 5 years.

but I couldn't swallow the extra $6k/yr in what would essentially equate to insurance..... who knows 5 years from now I may very well be kicking myself

How many folks would be forced into bankruptcy if their now 2.7% rate doubled to 5.4%..... I bet the numbers would be shocking

I'd like that too but reality is they will go up. Bank of Canada will probably drop rates again as our economy is atrocious but with the US already upping theirs lending rates will rise sharply.

 

[X-Treme]

I'm sure they will, how much is the question...I read up on the US impact on our rates and even had a frank discussion with my account manager. In the end the 10 year is still more risk than I was willing to take, a lower rate on a higher balance swayed me. If I do end up having to renew at over 6% 5 years from now it will end up costing me more unless I pound down my principal over the next 5 years.

but I couldn't swallow the extra $6k/yr in what would essentially equate to insurance..... who knows 5 years from now I may very well be kicking myself

How many folks would be forced into bankruptcy if their now 2.7% rate doubled to 5.4%..... I bet the numbers would be shocking

This, right here, is what alot of people almost bank on, I think.

The BOC cannot raise rates too much. If they do, they'll have a whole pile of real estate on their hands, as people will be declaring bankruptcy. And there won't be anyone to buy this real estate either.

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[Bnorth]

I'm sure they will, how much is the question...I read up on the US impact on our rates and even had a frank discussion with my account manager. In the end the 10 year is still more risk than I was willing to take, a lower rate on a higher balance swayed me. If I do end up having to renew at over 6% 5 years from now it will end up costing me more unless I pound down my principal over the next 5 years.

but I couldn't swallow the extra $6k/yr in what would essentially equate to insurance..... who knows 5 years from now I may very well be kicking myself

How many folks would be forced into bankruptcy if their now 2.7% rate doubled to 5.4%..... I bet the numbers would be shocking

5 years is a long time so to commit to something for 10 is a huge leap of faith IMO. I opted for 5 as well. I did a fair amount of research and figuring on interest rate increases as I knew they would be going up but I imagine most don't. They just go "how much per month?" "Ok yup I can swing that".

 

[Bnorth]

This, right here, is what alot of people almost bank on, I think.

The BOC cannot raise rates too much. If they do, they'll have a whole pile of real estate on their hands, as people will be declaring bankruptcy. And there won't be anyone to buy this real estate either.

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The BOC wants to drop rates to continue to stimulate spending but with US fed rates going up it will drive our inflation up if we continue to devalue our currency by keeping BOC rates low.

 

[LennyR]

They are gonna flop around a bit, up a bit, down a little , but in 5 years they won't be much higher. But, again, it's the first of the year, little fear forecasting, bit of what if threat , designed primarily to cause a percentage of renewers to lock in for longer terms, thus allowing the lenders to either sell off those mortgages or be able to commit the income for that period into higher revenue generating avenues.
Banks and lenders profits are gonna shrink up the next couple years based on the declining number of new builds and resales , plus the decline in sale prices , and most of them are gonna take a bit of a hit on any mortgage defaults that aren't insured. Plus , as some have said, the financial devastation that would result from a substantial interest rate rise would be an economic train wreck, that happening would be highly unlikely.

 

[freeflorider]

And I still remember when 8% was a awesome rate. First buy at 16 was a 16% loan on my car, but it was a cool car and being 16 yrs old I was like yah sounds good where do I sign.

 

[doorfx]

I remember 1980

 

[mathrulz]

2.59 on a 4 year closed seemed to be a good balance for me recently. I'd be very concerned with signing any sort of open floating contracts today, unless it is an open term as well I suppose.


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[cancritter]

I remember 1980

ya me to...Kapyong and Currie barracks.....

 

[LennyR]

2.59 on a 4 year closed seemed to be a good balance for me recently. I'd be very concerned with signing any sort of open floating contracts today, unless it is an open term as well I suppose.


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I'd be more concerned with the privileges and fine print in the longer term contract. big penalties and buyouts can far exceed the anticipated savings if situations change, And $hit happens fast in personal and family situations, good and bad.