Mortgage Blog - Mortgage Rates
Prime -.65% Now Available!
June 8, 2010 by Gordon McCallum
I’m happy to announce that we now have an adjustable rate mortgage (commonly known as a “variable”) at Prime -.65% which is, to my knowledge, the lowest in the country.
At the moment there’s only one lender at that rate, but they’re a good one, and as such some conditions apply, but if you’re interested in applying for this please do so or contact one of our Licensed Mortgage Associates for more details!
Thanks – have a great day!
Read more »Fixed vs. Variable Interest Rates in Canada
May 10, 2010 by Dania Spillett
The question always seems to be which to choose, especially considering the impending increase of interest rates. Which is more beneficial to you, the borrower, and which will save you more money?
According to Andrew Allentuck’s article in the Financial Post, the decision tends to depend on your access to cash and your risk tolerance. Borrowers with easy access to cash don’t mind taking the chance that their interest rates could increase, whereas others feel pressure to avoid any increase and prefer to stay locked in to a fixed rate. The latter tends to be the case for ...
Read more »Three Year Rate Special and RBC Raises Rates
April 13, 2010 by Gordon McCallum
I’ve just updated our mortgage interest rates with a 3 year fixed rate at 3.29%. It is a “quick close” so I believe it has to fund within thirty days of the application and some conditions apply, but it’s a substantially better 3 year rate than some of the others out there.
In fact, the difference between that rate and the five-year fixed rate might justify a second look now.
On another note, Royal Bank has increased their posted mortgage rate by .25% to 6.10%. Considering the usual discounts you’re likely to see “street” rates ...
Read more »MORTGAGE RATE ALERT - Lock-in Today!
March 29, 2010 by Gordon McCallum
Canadians awoke this morning to news that RBC and TD Banks had increased their mortgage rates. 5 year fixed rates went up as much as 6 tenths of 1 percent (.60%).
That takes their “discounted’ or “special offer” rates to as high as 4.59%. Clearly this is a substantial increase and puts them at a competitive disadvantage to many of our lenders who are still offering 5 year fixed rates in the 3.69% – 3.89% range.
If you’re in a variable rate mortgage at the moment and contemplating “locking in” my suggestion is to do it today ...
Read more »Long Term Rates Drop
March 22, 2010 by Gordon McCallum
I’ve just updated our interest rates because one of our lending partners dropped their 6, 7 and 10 year rates.
6 year closed: 4.55%
7 year closed: 4.65%
10 year closed: 4.99%
The six-year is nothing special because of the spread vs. a 5 year, but a 10 year fixed at 4.99% is a deal, and the lowest I’ve ever seen. If you’re into long-term stability and want a sweet deal, then I’d consider talking to one of our licensed mortgage associates because I’d be surprised if these lasted very long.
Read more »Interest Rate Update Feb 18 2010
February 18, 2010 by Gordon McCallum
Now that the federal government has made some changes to the mortgage qualification rules it seems to have created more certainty in the mortgage world, so we’re seeing some pricing changes from some of our lenders.
You can see all the latest Edmonton and Calgary mortgage rates here but the big ones everyone wants to know about are:
1 year fixed: 2.37%
5 year fixed: 3.69%
5 year Adjustable Rate Mortgage (or variable, if you prefer): Prime -.40% = 1.85%
7 year fixed: 4.95% – for those of you who really want to be conservative at a ...
7 Year Fixed Below 5 Percent
February 12, 2010 by Gordon McCallum
For the first time in quite awhile we’ve just had a lender (TD Canada Trust) drop their 7 year fixed rate below 5 percent, at 4.95%. The 10 year rate also went down to 5.20%.
If you’re skeptical about rates and think they’ll go up big-time with inflation pressures as the economy recovers, then this may be a good choice for you.
Frankly it’s still a big premium to pay over a 5 year fixed at 3.69% but for those who really want long-term security and are willing to pay, it could be ...
Read more »Should You Consider a 10-Year Mortgage Rate?
January 17, 2010 by Gordon McCallum
With interest rates at record lows, it might be tempting to consider a 10-year fixed rate. After all, at the current rate of 5.35%, that number is significantly lower than the past decade’s average five-year fixed mortgage rate of 6.78% (albeit, the posted rate).
The tricky thing about 10-year rates is that it’s impossible to predict where interest rates will go within a decade. In the past decade alone, five-year fixed rates fluctuated between 8.75% and 3.49% – and variable rates were even lower. True, if you were to opt for a five-year fixed rate ...
Read more »Canadian Bond Watch - January 13 2010
January 12, 2010 by Gordon McCallum
As you know by now, fixed interest rates are directly correlated with bond yields. The current Canadian bond yields show that bond yields have come back down after a 30 basis point run up over the past four or five weeks.
There had been a lot of speculation that the US and Canadian job reports would indicate better growth, which meant a likely scenario of rate increases. Thankfully for home buyers, that didn’t materialize, so we didn’t see any massive rate increases – with one exception.
In fact, today I received a notification from Street Capital that they had ...
Read more »Don't Say I Didn't Warn You
December 13, 2009 by Gordon McCallum
Things you need to know about interest rates so I can sleep at night knowing I told you before it was too late:
1. When the economy improves, rates will go up. This is because inflation puts upward pressure on bond yields, which leads to higher rates.
2. Fixed rates always move before variable rates. If you wait until the Bank of Canada announcement to lock in or get a rate hold, you’ve waited too long. Simply put, there is a free market for bonds which is always going to be faster and more responsive than a pre-scheduled announcement ...
Read more »Rates Likely Going Up - Get a Pre-Approved Mortgage Soon!
October 7, 2009 by Gordon McCallum
If you’re an economic news junkie like me, you’ve likely already noted that bond yields have increased massively in the past two days.
Our previous post on fixed rate spreads indicated that, if bond yields go up, fixed rates usually go up too – depending on the spread between the 5 year yield and 5 year rate.
It turns out that yields have gone up quite quickly because the market feels that there have been some really good indicators of a strong recovery.
You can read about our improving job numbers, better than expected consumer confidence, and several other ...
Read more »Monday Morning Mortgage Rate Drops
September 27, 2009 by Gordon McCallum
Good news to counter the cold weather: First Foundation’s mortgage partners have dropped their rates AGAIN.
Here are a few updates to get the week started off on the right foot:
1 Year Fixed: 2.40% (down from 2.55%)
3 Year – 3.34% (down from 3.39%)
5 Year – 3.84% (down from 3.89%)
And possibly the biggest sign that the recession is over: the Variable Rate Mortgage is at PRIME (currently 2.25%).
As always, some conditions apply. On approved credit, if you live in a tent we can’t mortgage it, etc…
Hope you had ...
Read more »Five Year Fixed @ 3.99%
August 30, 2009 by Gordon McCallum
One of our lenders just emailed us to let us know that they’ve got a 5 year fixed rate special on. The rate they’re offering is 3.99% for 5 years. Nice!
There are a few conditions associated with this one:
- Only NEW mortgage applications are eligible (sorry current clients)
– The mortgage must fund between before October 30th, 2009
– At least one applicant must have a credit score of 650 or higher
– Pre-approvals are NOT eligible on this promotion – i.e. only “live” deals and no rate holds
– This is only eligible for purchases and refinances of your ...
Awesome September Mortgage Specials
August 19, 2009 by Gordon McCallum
We’ve had such a great year so far at First Foundation that we wanted to say thank you to our mortgage customers by offering you even greater savings for the month of September.
Any mortgage that funds in September through First Foundation is eligible for an additional 5 basis points off our already low interest rates.
This is something we’ve never done before because it’s kind of expensive. In fact, it costs us about $500 for every mortgage we do this for – but it can save you thousands in interest costs. A family with an average mortgage ...
Read more »Rates - Fully Adjusted...For Now
June 12, 2009 by Gordon McCallum
Well, we’ve seen some massive rate increases from most of our lenders in the past week and a half. This has been in response to bond yields increasing.
If you’re a news junkie and want to track this stuff, you can watch bond yields (like the 5 year), add 1.70–1.80 points to it, and that should be the expected 5 year rate. If the actual rate is quite a bit below that, then it’s safe to say rates will be increasing.
If the actual rate is above that target, then you can safely assume ...
Read more »Bond Yields Up - Rates Going Up Soon
June 9, 2009 by Gordon McCallum
From one of our lenders:
Canadian 5 yr bond yields +14bps to 2.71— Four weeks ago it was 2.07. The spread, based on new 5 yr rate of 4.09%, is down drastically to 1.39%. With spreads this low again another interest rate jump is coming. An increase by as much as 25bps could be expected.
If you’re thinking about getting a mortgage or a pre-approval, get your mortgage applications in soon!
Read more »Variable / Adjustable Rates Have Come Down!
May 26, 2009 by Gordon McCallum
Good news! One of First Foundation’s mortgage lenders has dropped it’s rates on it’s Adjustable Rate Mortgage product to Prime +.4%. It’s still not as good as the “good old days” of Prime -.9%, but it’s getting closer.
If you think you could handle a floating rate over 5 years at 2.65% that the Bank of Canada guaranteed won’t go up until at least June of 2010, then let’s talk!
These mortgages are available all across Alberta – whether you’re in Calgary, Edmonton, Fort McMurray or anywhere in between.
Read more »Interest rates MAY go up soon
May 15, 2009 by Gordon McCallum
I’ve been doing some analysis of bond yields recently and if you watch the trends carefully, you might agree that fixed-rate interest rates may be on the rise.
If you’re under the impression that fixed rates won’t go up until June of 2010, you may miss the boat. That’s because only variable / adjustable rate mortgages are linked to the Bank of Canada’s overnight rate, and subsequently the banks’ “prime rate”.
Fixed rates are directly correlated with Candian bond yields. A five-year fixed rate, for example, is linked to the yields on Canadian five-year bonds. When ...
Read more »New Year's Mortgage Rate Drops!
January 7, 2009 by Shayla Damery
There's no better way to ring in the New Year than with amazing mortgage rate drops! First Foundation just got word that one of our lenders is now offering a one-year fixed rate for under 4.00%.
Street Capital's phenomenal one-year rate is now 3.89%. Wow!
On top of our lowest one-year rate, Street Capital is currently offering our lowest two-year fixed rate available at 4.59%.
Five-year fixed rates are also extremely low right now. From another of our lenders, we are able to offer a five-year rate of 4.84%. This is the lowest that ...
Read more »Five Year Mortgage Rate Below 5 Percent
December 11, 2008 by First Foundation
Well, it's been awhile...but the five-year fixed-rate mortgage is back under 5% as of today. Currently we have two lenders offering this rate but I expect a few more within days. It's a good sign if you want to buy a house or condo for Christmas!
Let's review the fundamentals of the Edmonton mortgage market:
- Affordable house prices? Check!
- Sufficient inventory to find what you want? Check!
- Motivated sellers? Check!
- Service availability? Lawyers...check! Appraisers...check! Land titles...check! Mortgage broker? CHECK!
- Favourable environment for conditional offers? Check!
- Low interest rates? DOUBLE CHECK!!
Low One Year Mortgage Rates...
November 18, 2008 by Shayla Damery
A fair amount of mortgage lenders are currently offering low one year term mortgage rates. Generally speaking, when many lenders are really promoting their one year rates, it means that they anticipate a rate change within the next year.
That being said, there is speculation that in a year's time, fixed interest rates could be 1.0% to 2.0% higher than what they are right now. That means that lenders will be able to renew those borrowers currently holding a one year mortgage (or entering into one shortly) at a higher rate.
A lender of ours, Merix Financial ...
Adjustable Rate Mortgages Still a Good Option
November 10, 2008 by First Foundation
Over the past month or so, we've seen both variable/adjustable mortgage rates and fixed mortgage rates increase, due to the higher cost of funding on the lenders' side of things. Adjustable rates are tied to the lenders' prime rates, and fluctuate as prime rates move. These rates can be prime minus a discount or prime plus a premium.
Regarding the recent history of adjustable rates, the increase in rates with our lenders has been from prime minus a discount as low as 0.6%, to prime plus 1.0%. That means that adjustable rates have increased up to ...
Three and Four Year Rate Drops
November 10, 2008 by Gordon McCallum
Just wanted to share a quick bit of news. One of our lenders just dropped their three and four year interest rates to 5.24% and 5.34% respectively. Not a bad alternative to a longer, more expensive term.
One more reason to choose First Foundation! We posted this rate decrease within two minutes of getting word from our lender. Be assured that we're always looking for ways to save you more money.
Read more »Mortgage Rates Typically Rise in the Fall
October 14, 2008 by Shayla Damery
The sky is not falling, but neither have rates. You don't need to be worried by rising mortgage rates, as it's a regular phenomenon that happens practically every fall. Last year, 5-year fixed mortgage rates went up to levels around 5.79%, 5.99% and even as high as 6.14% in January. So rest assured, rates should decrease again come springtime when lenders tend to get more competitive because that's the main buying season in Canada.
The thing that you should be aware of, however, is the rising difficulty associated with getting mortgages. The Government of ...
Read more »Rates Going Down!
May 23, 2008 by Gordon McCallum
5.09%
WOW Again! We've got some really nice spring specials from some of our lenders right now. For example, there's the "Essentials" mortgage at 5.09% for a 5 year fixed-rate...and for a more full featured mortgage, we have 5.25% available if the mortgage funds within 45 days, and 5.29% available from a couple of other lending partners with full 120 day rate holds.
The spring is usually when our lending partners are the most competitive because it's the natural buying season - especially here in Alberta when all that pent-up winter demand is ...
Read more »Why is Prime Going Down - But Not Fixed Rates?
April 25, 2008 by Gordon McCallum
One of the most common questions we've been hearing from folks lately is "Didn't the Bank of Canada just reduce interest rates half a percent?" Of course, the answer to that question is yes. The second question we get is "why haven't fixed rates gone down too?". The answer to that is more complicated.
You see, there is (or always has been, anyway) a direct relationship between Bank Prime rates and the Bank of Canada's overnight rate. If the Bank of Canada decreases or increases rates, the major banks usually follow suit. That's still the ...
Read more »Interest Rate Outlook
November 8, 2007 by Shayla Damery
For anyone who is curious about where experts expect interest rates to be headed in the next while, the forecast is sunny skies: rates are not expected to rise.
Essentially, the Bank of Canada doesn’t expect that it will need to raise interest rates in the near future because of the strong Canadian dollar, the weak
The possibility that interest rates won’t increase bodes well for those looking to purchase a ...
Read more »
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