Tridac Mortgages

With access to dozens of lenders we can find you the lowest mortgage rates.

To find the mortgage that works best for you contact us or call us at 416.461.0204. We're connected all the time and we'd love to hear from you.  

Stay up to date with mortgage interest rates. Toronto mortgage broker, Christopher Molder, updates viewers in his regular mortgage interest rate video series.

Mortgage Interest Rate Review January 19th 2012

Late last week while I was away in Punta Cana for the Mortgage Centre Annual conference lenders announced their newest fixed rate mortgages. Lenders are now offering 3.15% for a fixed 5 year rate mortgage which has again set a new low for fixed rate mortgages. Some borrowers might be surprised that the new rates announced by lenders aren't quite as close to BMO's 2.99% as they might have hoped. The truth is that at 2.99% the bank is not making any profit from the mortgage after considering their borrowing costs and administration costs. So the question begs to be asked, why would the bank be giving money away for free? The answer is two fold.

1) BMO has been losing mortgage market share over the past couple of years. Mortgage market share is important to the bank because inevitably their mortgage borrowers will open investment, savings & chequing accounts which drive profits.

2) The move to give money away is very intentional this time of the year because it is the beginning of RRSP season. The more people to visit a BMO branch the more opportunity they will have to cross sell RRSPs and other products.

Son of a broker's pick: You can't go wrong with the fixed 5 year at 3.15% and if you are feeling particularily rate sensitive the fixed 4 year at 2.99% is the answer. You get all the bells and whistles with out the restrictions of BMO's offer.

CURRENT RATES

1 Year Fixed – 2.99%

3 Year Fixed – 3.09%

4 Year Fixed - 2.99%

5 Year Fixed – 3.15%

5 Year Variable P-.10 (2.90%)

10 Year Fixed - 3.99%

Prime Rate is currently 3.00%

Rates are subject to change and subject to the lender's approval.

Reaction to BMO's 2.99% Fixed 5 Year Mortgage

There's lots of excitment surrounding the new fixed 5 year mortgage rate. It's an all time low, however, it all represents a "no frills" mortgage with many limitations and restrictions. Check out the reaction below (note: for non insured mortgages, mortgages that don’t exceed 80% loan to value, some lenders still offer 35 and even 40 year amortizations).

Mortgage Interest Rates - 3.25% For A 5 Year Fixed 5 Year Mortgage

While it looked as if fixed rate mortgages had run their course and would hold steady or trend upwards in 2012 Merix Financial just introduced a new fixed 5 year mortgage at 3.25%. This is amazing and it's the lowest fixed 5 year mortgage rate we’ve ever been able to arrange over the 34 years of our brokerage. 

If you'd like to apply for the 3.25% fixed 5 year rate call me at 416.461.0204 x 2. or emal me at chris@tridacmortgages.com. Keep in mind that my services are free of charge to you as I get compensated by the mortgage lender through a standard finders fee.

Mortgage Interest Rates - Toronto Mortgage Minute December 06, 2011

For the last time in 2011 the Bank of Canada met to make their interest rate announcement. As expected the Bank left the prime rate unchanged at 3.00%. So, if you have a variable rate mortgage or a line of credit your monthly payment won't change. The bank reported that conditions in global financial markets have deteriorated as the sovereign debt crisis in Europe has deepened. The recession in Europe is now expected to be more pronounced than the Bank had anticipated.

Closer to home, recent economic indicators in Canada suggest that growth in the second half of this year is slightly stronger than the Bank projected.

Although the crisis in Europe has effected bond prices, which are driving the yield down (typically a trigger for lower fixed rate mortgages), I am not certain that banks will be willing to pass on those prices to borrowers and I feel that fixed rate mortgages will remain unchanged and stable into the new year.

Son Of A Broker’s Pick Of The Week: The fixed 4 year at 2.99% offers you the lowest rate for the longest term and is the best bang for your buck today. Fill out a quick online application and I'll be in touch shortly to set you up with a 120 day ratehold for 2.99%.

1 Year Fixed – 3.08%

3 Year Fixed – 3.29%

4 Year Fixed - 2.99%

5 Year Fixed – 3.39%

5 Year Fixed (must close by Jan 31st) – 3.29%

5 Year Variable P-.10 (2.90%)

50/50 Hybrid 3.25% (effective rate)

Prime Rate is currently 3.00%

Bank of Canada Qualifying Rate for High Ratio Mortgages 5.29%

Remember, as an independent mortgage broker, I'm compensated by the lender through a finders fees. So my services don't cost you anything. Have a question? Need some help? Give me a call at 416.461.0204.

The following is a graph I sourced from my good friends at Ratehub.ca which shows the recent convergence of fixed and variable rate mortgages. Starting late August 2011 it's clear to see the upwards trend of variable rate mortgages converging with a relatively flat fixed rate market.

Mortgage Interest Rates - Toronto Mortgage Minute Novemeber 21, 2011

Toronto mortgage broker Christopher Molder updates the mortgage interest rate market for the week of November 21, 2011, through his regular mortgage review video series.

Before jumping into rates, Christopher points out that the number of Canadians carrying mortgage debt into their 70s is on the rise. A recent RBC poll showed that one-third (33 per cent!) of Canadians over the age of 55, have 16 or more years left on their mortgage term. Wow, a sobering fact.

After all those years of paying off the mortgage, many Canadians have to go back to back and take out a reverse mortgage to cover the cost of retirement living. It’s extremely ironic when you think of the life time spent paying for a mortgage just to have a free and clear home for the bank to register another mortgage on at the end of your life. Good for banks, bad for hard working Canadians.

Remember, rates are just part of the equation. Sure, we're all after the lowest rate, that's human nature, but remember not to get blind sided at the expense of a well tailored, customized mortgage that's flexible and meets your needs.

Remember, rates are just part of the mortgage equation. Flexibility and the ability for the mortgage to meet your needs are important factors too. Get a mortgage broker to help identify your needs, dymistify mortgage financing and above all, get the mortgage broker to customize the product for what you need.

Now to the rates....mortgage interest rates have stayed relatively stable due to the Government of Canada bond market over the past 2 weeks.

Mortgage Interest Rates - Toronto Mortgage Minute - September 23, 2011

Here's the scoop....last Friday, September 23rd, we saw a huge drop in the Government of Canada 5 year bond yield. This drop creates downwards pressure on fixed rate mortgages which are priced according to bond yields. Although fixed rate mortgages are priced at an all time low it appears that there is the capacity for rates to drop further according to this post from Canadian Mortgage Trends. There has also been some continuing action in the variable rate market as the spread on Prime minus mortgages are shrinking. Given the current global economic climate it seems unlikely that the Bank of Canada will need to move the prime rate over the short to medium term. This makes variable rate mortgages an attractive option if the risk that the prime rate can be mitigated. As such, Canadians have been switching into variable rate mortgages in a big way which has meant that the profit margins for mortgage lenders has begun to shrink forcing them to decrease the spread on their variable rate mortgages.

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