Essential fall reading to ensure your mortgage is on the right track.
To begin, now that mortgage rates have hit records lows, should you choose a fixed or variable rate?
If you want to figure out what will happen with mortgage rates over the medium term, you need to know where inflation is headed. But that is easier said than done.
This next post explores the opposing views that inflationary pressures will remain subdued for an extended period or that inflationary pressures are poised to rise considerably:
In its latest policy statement, the Bank of Canada (BoC) confirmed that it will keep its policy rate, which our variable mortgage rates are priced on, at its current 0.25% level for a long time.
The Bank is also buying at least $5 billion/week worth of government bonds, and this is helping to keep a lid on Government of Canada bond yields, which our fixed-mortgage rates are priced on.
The post below parses the BoC’s latest policy statement and explains why the Bank expects to keep rates low for a long time to come:
The BoC has said that rates are going to stay low for “a long time”, but how long is a long time?
If you’re in the market for a mortgage today, you are likely choosing between five-year fixed and variable rates, and if that is the case, it would be very helpful to know how the BoC’s “long time” will play out over the next five years.
The next post explains how the U.S. Federal Reserve’s statement provides important clues:
This final post provides a toolkit of information for anyone who is looking to purchase a property today.
It covers the following topics: pre-approvals, closing costs, bridge loans, mortgage payments, and the important terms and conditions in the mortgage contract fine print that you need to watch out for.
Finally, here is a chart showing my current five-year fixed and variable rates, depending on your transaction type and loan-to-value ratio.
The Bottom Line: Five-year fixed rates moved a little lower again last week while variable rates held steady.
I expect that rates will either remain at their current levels, or, more likely, continue to inch down over the short term.