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Mortgage Rates in Canada Are On The Way UP & END of 100% Financing!!!

Canadian Mortgage Rates for September 12th, 2008

6 Mth 1 Yr 2 Yrs 3 Yrs 5 Yrs 7 Yrs 10 Yrs

Bank of Montreal       6.21      6.65         6.70       6.70        6.85       7.30      7.65
Centum Mortgage     4.25       4.70         5.25       5.35        5.34       5.80      5.90
CIBC                           6.74       6.65         6.70       6.70        6.85       7.30      7.65

National Bank            6.30      6.30         6.30        6.35        6.85       7.25      7.45
Royal Bank                 6.35      6.35         6.35        6.35        6.85       7.30      7.95
Scotia Bank                6.35      6.35         6.55        6.69        6.85       7.30      7.95
TD Canada Trust        6.20     6.65   6.70        6.70        6.85       7.30      7.65

On October 15th, 2008, is when 100% mortgage financing and 40 year amortizations is over! For the most part anyway, they'll still be available on non-government backed mortgages. As a reminder, when the insurers cap their loan-to-value ratios at 95% in October, high-ratio borrowers will still be able to tack on insurance premiums to their mortgages.

I believe that the mortgage rate trends will continue going up for the next few months, due to the U.S. Mortgage Crisis, until they are stabilized.

1) What are your thoughts on these rates?

2) Where do you see these trends going?

Posted by Ann-Marie Clements M.S. GREEN REALTOR, Saint John, Quispamsis, & Grand Bay on 09/13/2008 02:18 PM

Comments (2)

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2 Comments on Mortgage Rates in Canada Are On The Way UP & END of 100% Financing!!!

Hi Ann-Marie,

I saw your posting indicating that mortgage rates are on the way up. I tend to disagree with you on this point. I am a Mortgage Agent located in Toronto and have seen 5 yera fixed rates slowly coming down, as the cedit crisis eases so will these rates. The chances of them going up are very slim as the bond yields do not reflect an increasing rate environment at this time. As for variable rates, with prime currently at 4.75%, Bank of Canada is expected to drop a further 25 to 50 basis points by spring of 2009 with oil set to go back to $100 a barrel and slowing global economies. It's true that the fixed rates have been higher than the norm (large spread from variable to fixed rates), but I feel from all indicators that rates will remain on the decline for some time to come and then level out.

I am interested in why you think that rates are going up?

www.kimgibbons.com

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09/14/2008 03:29 PM

by Kim Gibbons