{"id":1756,"date":"2020-03-27T10:27:23","date_gmt":"2020-03-27T14:27:23","guid":{"rendered":"http:\/\/www.karenmillar.com\/blog\/?p=1756"},"modified":"2020-03-27T10:27:24","modified_gmt":"2020-03-27T14:27:24","slug":"update-from-bank-of-canada","status":"publish","type":"post","link":"https:\/\/www.karenmillar.com\/blog\/update-from-bank-of-canada\/","title":{"rendered":"Update from Bank of Canada"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

I trust this finds you and your family safe and well. Below is an update from our Friend Jake the Mortgage Specialist:<\/p>\n\n\n\n

“This morning the\u00a0Bank of Canada<\/a>\u00a0dropped rates again. This will dictate (maybe) where variable rates are going (down). As a result, the\u00a0bond yields<\/a>\u00a0took a downturn, back to levels from a couple of weeks ago. These will dictate (maybe) where fixed rates are headed (I hope back down).
A reminder: variable rates and fixed rates don’t move in tandem.\u00a0<\/strong>Here’s why I say\u00a0maybe<\/em>\u00a0in both cases.<\/p>\n\n\n\n

1. All of the lenders\u00a0knew<\/em>\u00a0that variable rates would\u00a0be coming down. So all of them quickly eliminated any discount to variable (even actually adding a premium to variable). So whereas 2 weeks ago we could have had Prime-1% (today 1.95%), it’s now Prime or Prime PLUS. That totally screws new borrowers who want to renew, buy, or refinance. Screws them because going variable in uncertain times is a sure-fire winner. The penalty is very cheap to break out. You’d be crazy not to go variable IMO today.
However:\u00a0
1a. Nobody knows (yet – but we will soon) if the other banks will drop their variable rates by 1\/2, by 1\/4, or if at all. If they do then\u00a0Prime Rate<\/strong>\u00a0will be 2.45% (if by half) and 2.7 (if by 1\/4).\u00a0
However:
2. When the bonds are this low, technically rates should be\u00a0under 2%. But they are\u00a0over 3%. Something wild is going on with mortgage rates today and I sincerely hope it stops. We are also screwing borrowers who are buying, refinancing or renewing, and who want the security of a fixed rate (which may appeal to some).<\/p>\n\n\n\n

So all of this is to say there’s something fishy (annoying) going on behind the scenes and we have to wait until the dust settles to make sense of everything.
<\/p>\n\n\n\n

In other news,<\/strong>\u00a0I keep updating my\u00a0MORTGAGE RELIEF<\/a>\u00a0page and now TD, Scotiabank and RFA Mortgages all have online platforms to request mortgage deferrals. I expect all lenders to follow suit and will keep adding information as I find it.<\/p>\n\n\n\n

Please let me know if you have any questions as per the above.
Thanks
Jake 416-910-4448″<\/p>\n\n\n\n

Thanks for reading everyone! Please contact myself or our team should you need any help at this time of unrest.<\/p>\n\n\n\n

Regards,<\/p>\n\n\n\n

Karen<\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

I trust this finds you and your family safe and well. Below is an update from our Friend Jake the Mortgage Specialist: “This morning the\u00a0Bank of Canada\u00a0dropped rates again. This … [read more<\/a>]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,1518,5,153],"tags":[1564,1571,1174,1513,1524,1534,1517,1512,218,1568,1535,672,126,1565,1566,331,1570,1173,191,332,1569,133,1567],"class_list":["post-1756","post","type-post","status-publish","format-standard","hentry","category-community","category-covid-19","category-real-estate","category-toronto","tag-bank-canada","tag-bond-yields","tag-buying","tag-corona-virus","tag-coronavirus","tag-covid","tag-covid-19","tag-covid19","tag-financing","tag-fixed-rates","tag-housing-update","tag-karen-millar","tag-karen-millar-team","tag-mortgage-derferrals","tag-mortgage-relief","tag-mortgages","tag-prime","tag-selling","tag-toronto-homes","tag-toronto-housing","tag-toronto-housing-report","tag-toronto-life","tag-variable-rates"],"_links":{"self":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1756","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/comments?post=1756"}],"version-history":[{"count":1,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1756\/revisions"}],"predecessor-version":[{"id":1758,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/posts\/1756\/revisions\/1758"}],"wp:attachment":[{"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/media?parent=1756"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/categories?post=1756"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.karenmillar.com\/blog\/wp-json\/wp\/v2\/tags?post=1756"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}