Tag: Mortgage Rates

Canadian Home Prices Expected to Drop by 10%?

Last week, CIBC stated that Canadian homes would drop 5 – 10 percent within the next two years.  The main factor causing this decrease in the value of Canadian homes is rising mortgage rates.  It does make sense that increasing mortgage rates will slow down housing demand, but is a decrease in home prices by […]

Is the New Mortgage Qualifying Rate too high?

On April 19, 2010, new mortgage rules were introduced by the government.  One of the new mortgage rules involved changing the mortgage qualification rate.  The mortgage rate which homeowners must now use to qualify is the Bank of Canada posted 5-year fixed mortgage rate (or the mortgage contract rate if it is higher).  So if […]

Bank of Canada Expected to Increase Rates to Deal with Rapid Inflation

The Canadian economy soared in April.  Retail sales during April increased by 2.1 percent within Canada.  This is the fourth straight month where retail sales increased.  Without a doubt, consumer spending within Canada is booming and shows no signs of slowing down.  As a result inflation has also increased.  Inflation increased by 1.8 percent during […]

The Current and Future Status of Variable Rate Mortgages

It is no secret that fixed mortgage rates have been on the rise.  Less than a month ago, the Bank of Canada’s posted conventional 5-year mortgage rate was 5.25%.  It is now 6.10% and is likely heading upwards.  But what about variable mortgage rates?  Have they increased as well?  No, they have not.  Prime Rate […]