The House: June 3, 2024

Welcome to The House, your bi-weekly dose of Canadian Mortgage news. We deliver the most up-to-date information directly to your inbox every second Monday containing industry news, updates, and more for professionals in the Mortgage industry.

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What’s Happening:

• Bank of Canada rate announcement this week on Wednesday, June 5th.

• Nesto is in talks to purchase a controlling stake in CMLS.  More and more consolidation is taking place in the industry, this is an unsurprising move by nesto as they seem to be building their servicing book of business and grow through partnership and acquisition.

• Globe and Mail reports that odds are now heavily leaning towards a Bank of Canada rate cut on Wednesday.  This comes as reported GDP growth comes in lower than expected.

• The Big Six banks are putting millions aside to protect against default risk.

• First National reported a decrease of 20% in mortgage originations in Q1.  This has been evident in a rate between between First National and a few of the big banks over the last quarter.

Mortgage Rates  - Banks

• 5-year fixed  - 5.14%

• 4-year fixed  - 5.29%

• 3-year fixed  - 5.55%

• 5-year fixed (High-Ratio) - 4.84%

• 4-year fixed (High-Ratio) - 5.59%

• 3-year fixed (High-Ratio) - 6.99%

Mortgage Rates - Digital & Monoline Lenders

• 5-year fixed - 4.99%

• 4-year fixed - 5.09%

• 3-year fixed - 5.19%

• 5-year fixed (High-Ratio) - 4.59%

• 4-year fixed (High-Ratio) - 4.94%

• 3-year fixed (High-Ratio)  - 4.84%

Compare current rates here.

Market Updates & Trends:

• Prime rate sitting at 7.2%.

• A majority of Canadians are optimistic about a rate cut this Wednesday, as are mortgage professionals and institutions across the country.

• BMO has reported increased delinquencies and their economists believe that high interest rates are here longer than previously anticipated.

• The Financial Post shares mortgage advice on what to do if, and when, the Bank of Canada cuts the overnight interest rate.

• CMHC reports that mortgage debt is growing at its slowest pace in 23 years.  This could be short lived with an enormous amount of renewals maturing into a higher interest rate environment.

• Scotiabank sees variable mortgage rate clients showing signs of payment stress.

Events

• Montreal Real Estate Forum (Montreal) - June 6, 2024

• Raining Referrals and Uncommon Loyalty (Webinar) - June 11

• Women in Mortgage Summit (Toronto) - June 5, 2024

• 2024 Mortgage Symposium (Vancouver) - June 24, 2024

• Canadian Mortgage Summit (Toronto) - September 26, 2024

Who’s Hiring:

• nesto, Mortgage Advisor

• Neo Financial, BDM - Vancouver

• HomeEquity Bank, Business Development Manager

• EQ Bank, Senior Product Manager

• Homewise, Mortgage Advisor

• Rocket Mortgage, Mortgage Agent (Remote)

• RBC, Mortgage Specialist

• Pine, Business Development Representative

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