*Updated* Ongoing Bank of Canada Benchmark Rate Announcements

[rohara66]

Originally Posted by blender

Ive always wondered why so many people took variable rates at rock bottom.
I know one guy who went the other way and locked in for 10 years low 3s four years ago. Seems smarter.

I will sign for as long as possible if I ever see a sub 3% rate ever again.

[indes]

Originally Posted by blankall

You did alright. I know people who took out million dollar mortgages at 1.4% variable and were paying over 6% later.

I have a friend with 3 properties who renewed them all variable when I signed a 5 year 1.6%. Not sure wtf he was thinking, let's just say his regret has been palpable for the last few years.

[kevman]

Originally Posted by blender

Ive always wondered why so many people took variable rates at rock bottom.
I know one guy who went the other way and locked in for 10 years low 3s four years ago. Seems smarter.

I agree that getting a variable mortgage 4 years ago when the spread against fixed was low was a bad decision, but locking in at low 3's 4 years ago when you could get a mid 1% rate was also not the right call. Even if those on 5 years @ 1.6% renew at 4.5% next year for the last 5, they'll still be ahead of the guy at 3.3% for 10 years.

[The Fonz]

Sounds like a 25bps cut coming on Wednesday, getting the benchmark to 3.00%.

[TheIronMaiden]

Do we have any sense where mortgage interest rates will be around August?

[Bonded]

Originally Posted by TheIronMaiden

Do we have any sense where mortgage interest rates will be around August?

That answer will wildly depend on what Trump does IMO

[Engine09]

Before the US election there were predictions that rates would continue to slowly drop into summer of 2025. There seemed to be some predictabilty and stability.

Now that the orange rapist is back who knows what will happen, although if some of his blathering threats actually happen there are some who predict a Canadian recession and falling interest rates. Only repeating what I remember from random articles.

[Johnny Makarov]

Originally Posted by TheIronMaiden

Do we have any sense where mortgage interest rates will be around August?

I'm at 1.95% right now due in September... guess there is no chance of touching that.

[TheIronMaiden]

I'd be happy with anything south of 4% given how it has been the last few years.

[MillerTime GFG]

In certain cases, you can find interest rates in the 3.8% range on a 3-year term with a certain "red" bank, but most lenders are closer to the 4.5% range.


As someone mentioned, it really does depend on what Trump does. Prime rate is something the BoC can manipulate, but bond yields (fixed rates) mirror what happens in the US, so it really depends what Big Red down there does. Hopefully we see rates in the 3.5-4% range as the norm, instead of on exception.

[blender]

I'm renewing Feb 14.
Can't decide if I should fixed or variable. Most recent quote was 4.4 fixed, 4.99 variable (3-year).
Might see a drop after Wednesday.
Any thoughts?

[MillerTime GFG]

If the overnight rate drops on Wednesday, it will likely have very little impact on bond yields tbh.

I don't really see value in a 3-year variable over a 5-year either, given it's a 3-month interest penalty either way. 5-year rates are almost always lower.

[Muta]

Originally Posted by blender

I'm renewing Feb 14.
Can't decide if I should fixed or variable. Most recent quote was 4.4 fixed, 4.99 variable (3-year).
Might see a drop after Wednesday.
Any thoughts?

I just went through this, renewed my mortgage last week; I renewed at 4.7% with CIBC (current customer and negotiated with them for that rate), 3-year variable (the 5-year variable offer was still also 4.7%). Rates will come down 0.75-1% over the next year IMO, and this upcoming rate drop is part of that prediction. It will drop lower than the offered fixed rate, hence why I took the variable. This time next year, I could see my rate go down to 4%, maybe even 3.75%.

Turned down a 4.25%/5-year adjustable with another provider, just because I have a commitment problem to anything more than three years haha. Plus I didn't want a fluctuating payment with an adjustable, and who knows what the prime rate will be in 3+ years.

[Manhattanboy]

If Trump follows thru and C$ tanks, how high does BofC raise rates?

[Slava]

Originally Posted by Manhattanboy

If Trump follows thru and C$ tanks, how high does BofC raise rates?

The economy will suck, so you want inflation, and you want spending. So they'll chop rates hard, and you should see a lot of government spending and "quantitative easing." The last concern is whether the CAD/USD exchange rate is reasonable (and really, if it's lower, it will make the exports more palatable).

[Winsor_Pilates]

Originally Posted by The Fonz

Sounds like a 25bps cut coming on Wednesday, getting the benchmark to 3.00%.

Confirmed & announced this morning.

[Engine09]

Just a reminder when negotiating your mortgage, get everything agreed to on paper, pdf, email, whatever.

While going back and forth trying to get my interest rate down my mortgage broker agreed to waive the $300 property valuation fee. But of course when he answered my emails it was only to say "call me" and he agreed to waive the fee verbally on the phone.

This morning what do I see deducted from my bank account? $300 for a property valuation fee. Now I have to waste time getting back in touch with this guy.

Also, becuase he insisted we talked on the phone and cell phones sound like garbage either I misheard him or he didn't get what I was saying and my paperwork was all f'ed up. Had to get it corrected and signed at the last minute.

[blankall]

Not sure if we've discussed it already, but Canada also made pretty big changes to the insured mortgage threshold in December, raising it from $1 to $1.5 million. Could have a fairly major impact on the housing market, in the next feeding frenzy.

[MillerTime GFG]

Originally Posted by Engine09

Just a reminder when negotiating your mortgage, get everything agreed to on paper, pdf, email, whatever.

While going back and forth trying to get my interest rate down my mortgage broker agreed to waive the $300 property valuation fee. But of course when he answered my emails it was only to say "call me" and he agreed to waive the fee verbally on the phone.

This morning what do I see deducted from my bank account? $300 for a property valuation fee. Now I have to waste time getting back in touch with this guy.

Also, becuase he insisted we talked on the phone and cell phones sound like garbage either I misheard him or he didn't get what I was saying and my paperwork was all f'ed up. Had to get it corrected and signed at the last minute.

Depending on the lender, brokers actually are not allowed to pay for it up front. The way around this is to reimburse clients for it, usually post-closing. I assume that's what they were planning.

[chemgear]

Originally Posted by blankall

Not sure if we've discussed it already, but Canada also made pretty big changes to the insured mortgage threshold in December, raising it from $1 to $1.5 million. Could have a fairly major impact on the housing market, in the next feeding frenzy.

Hey, you can't afford anything? It's okay, we'll let you borrow more and get into even more debt!