BREAKING Bank of Canada cuts again - to 0.25% - March 27

[TimLacroix]

Great News for variable rate mortgage holders... RBC, TD have dropped 0.50% so the Prime rate is 2.45% (RBC) and 2.60% (TD).

TD has 2 Prime rates and their Mortgage Prime is 2.60% and the bank Prime is 2.45%

[TimLacroix]

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So what does this mean for Mortgage rates? I’m financially inept, sorry for not understanding haha

What would a good mortgage rate be now?

Variable rate mortgages are different from a week ago... Prime dropping by 1.50%. This is great as Prime is 2.45% vs 3.95% 2 weeks ago. However the discounts are pretty much eliminated from Prime - 1.00% to almost nothing.

The Bank of Canada rate drop does not change the fixed rates... the 5-year Bon Yield is usually the basis for 5-year fixed rates. Which means, banks usually have a spread of approx 1.50% and with todays bond yield at 0.629... the 5 year fixed rates should be around 2.10%-2.20%

They aren't there due the current market conditions and one factor is that the lenders costs for these funds have jumped meaning most fixed rates have risen. I will update the Beyond rate page today - note the rates have changed daily and will try to keep them up to date.

[davidI]

This is just a currency race to the bottom. The last thing the BOC should want to do now is encourage more household debt.

Maybe soon it will be Albertans going over the border to help pick fruit for greenbacks (which will arguably also become more useless on the world stage).

[Brent.ff]

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Great News for variable rate mortgage holders... RBC, TD have dropped 0.50% so the Prime rate is 2.45% (RBC) and 2.60% (TD).

TD has 2 Prime rates and their Mortgage Prime is 2.60% and the bank Prime is 2.45%

Their site still has 3.10?

[Brent.ff]

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Their site still has 3.10?

nevermind, down to 1.55 on mine. crazy

[Chester]

CIBC Prime is @ 2.45 as of this morning.

[goldfish168]

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Why is MCAP so slow to adjust compared to some other places like Merix, or bigger banks?

They probably will lower to 2.45% by May 1st now, considering how slow they are to adjust on the last one...

MCAP is finally lowering their prime to 2.45% on April 2nd.

1st rate drop MCAP followed along
2nd rate drop MCAP delayed 16 days until April 1st when others dropped on Mar 16th
3rd rate drop MCAP delayed 6 days until April 2nd when others dropped on Mar 27th

This will definitely be put into consideration on renewal. It wouldn't surprise me now if MCAP doesn't pass along any future rate drops completely and justifies it as matching TD's mortgage prime of being 0.2% higher.

[jwslam]

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IKR?
My bank is still sitting at 3.95 prime according to my mortgage portal.

When it went up to 3.95 on Oct 25/18, there was no hesitation to go up by Nov 1...

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What bank are you with... ? If it hasn't changed yet, it is likely happening April 1.

Was Street Cap.
Confirming my Prime is 2.45 now.

[ercchry]

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MCAP is finally lowering their prime to 2.45% on April 2nd.

1st rate drop MCAP followed along
2nd rate drop MCAP delayed 16 days until April 1st when others dropped on Mar 16th
3rd rate drop MCAP delayed 6 days until April 2nd when others dropped on Mar 27th

This will definitely be put into consideration on renewal. It wouldn't surprise me now if MCAP doesn't pass along any future rate drops completely and justifies it as matching TD's mortgage prime of being 0.2% higher.

It’s like you think they’re a bank or something? You do know they’re a monoline and their hands are tied with their investor (which is a big bank)

[ExtraSlow]

Just a single data point, but interesting nonetheless, National Bank just offered me variable at Prime Minus 0.1% for a renewal. So Tims comment about smaller discounts seems to be holding true.

[sabad66]

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Just a single data point, but interesting nonetheless, National Bank just offered me variable at Prime Minus 0.1% for a renewal. So Tims comment about smaller discounts seems to be holding true.

that is pretty bad. i have a renewal in May and i was offered prime - 1.05 for a variable. Lender is Canadiana/Paradigm Quest. Def shop around more.

[ExtraSlow]

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that is pretty bad. i have a renewal in May and i was offered prime - 1.05 for a variable. Lender is Canadiana/Paradigm Quest. Def shop around more.

Oh I have. Beyond sponsor is my mortgage broker and I'm signing with his option, which is a lot better. Just wanted to give context for anyone who doesn't have a rate or discount locked in somewhere.

[JRSC00LUDE]

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Oh I have. Beyond sponsor is my mortgage broker and I'm signing with his option, which is a lot better. Just wanted to give context for anyone who doesn't have a rate or discount locked in somewhere.

What did you end up getting?

[ExtraSlow]

I'm locked in from a while back at prime minus 1.0% Works good for me.

[JRSC00LUDE]

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I'm locked in from a while back at prime minus 1.0% Works good for me.

Yup, that's great!

[sabad66]

i'm still on the fence about going with a 2.39% 5y fixed. 1.4% on the variable is insanely low and would save me about $130 a month on my rental, but i really don't want to be in a shitty position later on when rates go up.

fuck i hate making decisions like this.

[Disoblige]

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i'm still on the fence about going with a 2.39% 5y fixed. 1.4% on the variable is insanely low and would save me about $130 a month on my rental, but i really don't want to be in a shitty position later on when rates go up.

fuck i hate making decisions like this.

Variable! Variable! Variable!
Be honest. Do you really think rates are going to rise that quickly? Even if so, how much will they increase? Maybe you pay a little extra here and there, but IMO the risk/reward is worth it.

[killramos]

One of the very few things that had gone my way in the past few months is that I am not paying an average of 1.55% interest on my mortgages. I got super lucky with my variables.

[O&G]

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One of the very few things that had gone my way in the past few months is that I am not paying an average of 1.55% interest on my mortgages. I got super lucky with my variables.

Likewise. I have td minus 1.1% so im psying 1.5% on it.

[Misterman]

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i'm still on the fence about going with a 2.39% 5y fixed. 1.4% on the variable is insanely low and would save me about $130 a month on my rental, but i really don't want to be in a shitty position later on when rates go up.

fuck i hate making decisions like this.

Seems like a simple decision. Rates ain't going anywhere for a long time, the economy is fucked and isn't even at the bottom yet. A full percent savings is going to pay far more on your principal in the next 5 years than being locked in. And even if they do something insane like raise rates and further try to fuck the economy, it's not going to be a full a percent jump. Even with a 0.5% increase on your variable, you're way ahead of the game compared being locked in.