The House: September 16, 2024

Welcome to The House! Your go-to bi-weekly update on everything happening in the Canadian mortgage industry. Every second Monday, we bring you the latest industry insights, crucial updates, and more, tailored specifically for mortgage professionals. Stay up-to-date with news delivered directly to your inbox.

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What’s Happening:

• Rate Relief: As widely expected, the Bank of Canada cut the overnight interest rate by 25 basis points. Further cuts are expected as concerns grow of inflation dipping below the targeted 2%.

• TMG x The Mortgage Outlet: In an effort to enhance systems and resources for brokers, the two notable mortgage brokerages have teamed up. TMG is Canada’s largest independent brokerage and The Mortgage Outlet claims over $1 billion in annual funded volume with over 200 agents.

• Private Mortgage Warnings: The Financial Services Regulatory Authority (FSRA) has shared their growing concern for borrowers due to “the lack of a clear exit strategy” from their high-interest rate, private mortgage. Private mortgages play an important role in providing credit access to those underserved, however, it’s important those borrowers know the terms and exit options of their mortgage.

• Inflation Predictions: With the CPI update from Statistics Canada on Tuesday, economists predict it to come in at 2.1%. If true, this would be the lowest level we’ve seen since March 2021.

Market Updates & Trends:

• Prime Rate: 6.45%.

• Housing Start Highs: In much needed news, housing starts reached their highest level in more than a year. Starts rose by 15.7% over the previous month led by Ontario, Alberta, Saskatchewan, and British Columbia.

• Fixed Rates on the Decline: With the bond market yield continuing to decline, so have fixed mortgage rates. Rob McLister from the Financial Post suggests that we may see rates as low as 3.99% in the near future.

• Playing it Safe: Despite the recent rate cuts, many borrowers remain hesitant to choose variable-rate mortgages. The aggressive rate hikes in 2022-2023 left a lasting negative impression on many homeowners. As a result, the majority are opting for short-term fixed-rate mortgages, offering more stability in an uncertain economic climate.

• CIBC’s Bold Forecast: CIBC anticipates a bold move from the Bank of Canada with potential rate cuts of up to 50 basis points by the end of the year. Pressures like weakening employment figures and higher mortgage renewals are key drivers of this forecast.

Mortgage Rates  - Banks

• 5-year fixed  - 4.94% - RBC, TD

• 4-year fixed  - 4.99% - National Bank, RBC

• 3-year fixed  - 5.09% - RBC

• 5-year fixed (High-Ratio) - 4.49% - National Bank

• 4-year fixed (High-Ratio) - 4.89% - National Bank

• 3-year fixed (High-Ratio) - 4.99% - TD

Mortgage Rates - Digital & Monoline Lenders

• 5-year fixed - 4.64% - Pine

• 4-year fixed - 5.04% - First National

• 3-year fixed - 4.74% - Pine

• 5-year fixed (High-Ratio) - 4.19% - nesto

• 4-year fixed (High-Ratio) - 4.54% - Pine

• 3-year fixed (High-Ratio)  - 4.44% - Pine

Compare current rates here.

Events

• CAMLA Vancouver Expo (Vancouver) - September 20, 2024

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

• Canadian Mortgage Hall of Fame (Montreal) - October 28, 2024

• 2024 National Mortgage Conference (Montreal) - October 26-28, 2024

• Mortgage Forum (Toronto) - November 15-17, 2024

Who’s Hiring:

• nesto, Mortgage Advisor

• Rocket Mortgage, Mortgage Agent (Remote)

• RBC, Mortgage Specialist

• First National, Mortgage Underwriter

• Haventree Bank, Mortgage Operations Specialist

• Dominion Lending Centre, Mortgage Agent

• Pineapple, Mortgage Agent

• Neo Financial, Mortgage Loan Review Specialist

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