Calgary Mortgage Rates
Commercial banks often charge in excess of 1 full percent (100 basis points) more than Preferred Lenders (Calgary Mortgage Broker) for the same mortgage product. If you'd like more information on Calgary mortgage rates or to speak with a Calgary mortgage broker, give us a call at 703-2404 or contact us today.
Calgary Mortgage Information
| Current Calgary Mortgage Rates* | |||
| Term | Preferred Rate | Bank Rate | |
| 6 Month | 3.95% | 4.65% | |
| 1 Year | 2.55% | 3.70% | |
| 2 Year | 3.04% | 4.20% | |
| 3 Year | 2.79% | 4.75% | |
| 4 Year | 3.69% | 5.44% | |
| 5 Year | 3.59% | 5.79% | |
| 7 Year | 4.70% | 6.49% | |
| 10 Year | 5.10% | 6.80% | |
Prime Rate is currently: 2.75%
Closed Variable Rate: Prime minus 0.65
Ask about 35 year Amortization Mortgages
*Increase of allowable debt servicing ratios from 40% to 44% of income*
Calgary Mortgage Forecast
Bank of Canada likely to keep rates on hold, CIBC chief economist says
Wednesday, August 18, 2010 [Story courtesy of financialpost.com]
OTTAWA — After raising interest rates twice this summer from record-low levels, CIBC's chief economist says weakness in the U.S. economy may force the Bank of Canada to put future hikes on hold after September.
"North America's story is again darkening," says Avery Shenfeld in CIBC's Global Positioning Strategy report released Wednesday. "We were looking for a material second-half slowdown for the U.S. but as it turns out, it's already happened."
As a result of the dampened external growth outlook, Shenfeld has trimmed his call for rate hikes. He sees Canadian overnight rates going no higher than two per cent in 2011.
Earlier this month, the U.S. Federal Reserve released a more gloomy outlook for the economy, saying the recovery "has slowed in recent months."
The Fed also left benchmark overnight interest rates steady in a zero-to-0.25 per cent range and renewed its pledge to keep them there for an “extended period,” as widely expected.
The future points to a "further fiscal belt tightening in 2011 that will have to be softened, and accompanied by quantitative easing, if the U.S. is to stay out of recession in early 2011 and get back to potential growth by the end of that year,” Shenfeld says, adding rate hikes are not expected in the U.S. until 2012 “at the earliest.”
This led Shenfeld to conclude that while Canada is in much better economic shape — it leads the U.S., eurozone, U.K. and Japan in first-half growth and has a much rosier employment picture than the U.S. — it “cannot move all the way to normalized interest rates while the U.S. Federal Reserve is still on hold.”
After leaving rates at a record-low level of 0.25 per cent for more than a year, the Bank of Canada raised its key policy rate 25 basis points in June and then again in July on a strengthening economy. It now stands at 0.75 per cent.
However, the central bank said “considerable uncertainty” in the global economic outlook would force the bank to “carefully weigh” future rate decisions.
Shenfeld says he doubts the Bank of Canada “has been shocked enough to forestall a rate hike in September” but his forecast that Canadian growth in the second and third quarter will fall below the central bank’s outlook will likely warrant a rethinking in the October Monetary Policy Report and in the months to follow.
After posting annualized growth of 4.9 per cent in the final quarter of last year and 6.1 per cent in the first quarter of 2010, the Bank of Canada now expects the economy to expand by three per cent for the three-month period ended June 30 — down from its original forecast of 3.8 per cent — and by 2.8 per cent in the third quarter — revised from 3.5 per cent.
Bank of Canada raises key interest rate to 0.5%
OTTAWA (Reuters) June 01 2010 – Canada became the first of the G7 major industrialized countries to begin hiking interest rates following the global financial crisis, raising its key rate on Tuesday by a quarter-point to 0.50 percent.
The Bank of Canada gave no guarantee it would continue hiking its overnight target rate, which it had kept at an emergency low of 0.25 percent since April 2009, saying the European debt crisis and uneven global recovery clouded its confidence in a sustained recovery.
“Given the considerable uncertainty surrounding the outlook, any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments," the central bank said in a statement.
After two quarters of robust economic growth in Canada, the bank said activity was broadly in line with its expectations, as was inflation.
The debt crisis in Greece and some other euro zone countries has so far had only a limited impact on Canada through lower commodity prices. But the bank said some countries will now be forced to tighten their budgets quickly and that, combined with debt reduction by banks and households, could slow the pace of global growth.
(Reporting by Louise Egan; Editing by David Ljunggren)
CANADIANS NOT OVERLY CONCERNED WITH INTEREST RATES RISING: Investors Group Survey
(April 29 2010) One-third of Canadian mortgage-holders are not concerned about their ability to make payments if interest rates rise, according to a recent survey by Investors Group, while four in ten respondents said it would take at least a three per cent rate hike before they began to worry.
"Canadians appear to have both feet on the ground through these ups and downs, but everyone needs to ensure their confidence is aligned with reality," said Peter Veselinovich, vice-president, banking and mortgage operations at Investors Group.
The sample's median outstanding mortgage balance was about $130,000. With a 25-year amortization, a three per cent rate increase would add over $200 to monthly payments on that balance, $70,000 over the course of the mortgage, the survey said.
Despite the survey's results, other homeowners are more than willing to part with their property. Nearly 100,000 new listings were posted last month, the busiest March on record according to the CREA. Over 230,000 listings have been added since the beginning of 2010, amounting to the most for any first quarter. However, the number of listings is still down nine per cent nationally from last year.
3 Changes for Canadian Mortgage Industry take effect April 19 2010
(April 7 2010) As I am sure you may have heard, there were a few changes this week in respect to the rules regarding mortgage qualifying. The biggest change is the requirement that all borrowers be qualified at a five-year fixed mortgage rate even if they choose a shorter-term, lower-interest product.
The government also lowered the maximum amount Canadians can withdraw in refinancing their mortgages from 95 to 90 per cent. The government also introduced a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased "for speculation."
The reality is that these rule changes will affect less than 10% of the home buying market. CMHC insured rentals carried a very expensive premium surcharge and were not very popular and with the historically low interest rates, variable rate mortgage account for a small fraction of most lenders portfolio’s right now.
As you may have heard, there were a few more CMHC changes this week in respect to the mortgage qualifying:
- All borrowers choosing a fixed rate mortgage with a term of less than 5 Yr and any borrower choosing any variable rate mortgage product will have to qualify on a 5 Yr fixed mortgage rate
- The 5 Yr rate that the lenders must use in establishing affordability is the BANK of CANADA's 5 Yr standardized rate which currently sits at 5.49%
- The government has lowered the maximum amount Canadians can withdraw when refinancing their mortgages from 95 to 90 per cent.
We now also have been told that CMHC will only allow a 50% addback on rental property income and no longer allow the 80% direct offset that is currently allowed. This will affect clients who want to move to a new home and keep the current residence as a revenue property. The current CMHC "Self Employed Stated Income" program is now only eligible for clients whose self employed tenure is less than 3 years.
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