Bank Of Canada Drops 5-Year Posted Mortgage Rate Back Down

July 25th, 2011

The Bank of Canada (Boc) dropped their posted 5-year mortgage rate from 5.54% to 5.39% this past week. This is the rate on most 5% cash back mortgage products and is the rate used to qualify 5-year variable rate mortgages. Also the BoC kept Prime rate at 3.00%, which is the key figure that drives variable mortgage rates up or down. Given these recent moves (or lack thereof), it seems that all is stable with regards to mortgage rates for the time being.

Here are our current mortgage rates:

1-year: 2.64%
3-year: 3.30%
5-year: 3.54%
10-year: 4.99%
Variable: 2.15%

First Toronto Mortgage (http://firsttorontomortgage.com)

Mortgage Rates On The Rise!

July 4th, 2011

With the increase of the 5-year bond yield, mortgage rates are jumping back up this week. RBC has raised their 5-year mortgage rate by 15 bps. Over the next week, you can expect that other mortgage lenders will follow RBC’s steps and increase their 5-year mortgage rate as well. Also it is expected that the Bank of Canada will increase the benchmark qualification mortgage rate from 5.39% to 5.54% at their next meeting (which is scheduled to take place on July 11th). The Bank of Canada qualification mortgage rate is the rate used to qualify all high ratio variable rate mortgages. The higher this rate, the harder it is to qualify.

First Toronto Mortgage (http://firsttorontomortgage.com)