The House: September 3, 2024

Your bi-weekly dose of Canadian mortgage news.

September 03, 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:

  • All Eyes on the Bank of Canada: Tomorrow’s rate announcement is the talk of the industry, with economists widely anticipating another rate cut—the third in just over three months. The buzz doesn’t stop there, as deeper and faster rate reductions are predicted throughout 2025.

  • RBC's Competitive Struggles: Canada’s largest lender, RBC, admits they’re ‘battling’ through what they call ‘historic’ and ‘intense’ competition, pulling out all the stops to maintain their market share. Ultimately, this is resulting in a ‘rate war’ between lenders.

  • BMO's Challenges: BMO reports a rise in delinquencies and loan loss provisions in Q3, signaling potential challenges ahead.

  • GTA Housing Concerns: Urgent government intervention is being called for following a report from the Building Industry and Land Development Association, which revealed that July home sales in the GTA hit a record low.

Market Updates & Trends:

  • Prime rate: Holding steady at 6.70%.

  • Shifting Preferences: As rates decline, lenders are noticing a shift in borrower preferences from 3-year to 5-year fixed rates. Pine Mortgage CEO Justin Herlick predicts a major swing back to 5-year fixed rates once they dip into the 3% range.

  • Debt on the Rise: Equifax reports that consumer debt and average credit card balances have soared to a 17-year high.

  • Scotiabank’s Mortgage Strategy: Scotiabank hits an 'inflection point' with its multi-product mortgage strategy. After intentionally slowing down their mortgage portfolio to focus on deposits, they’re now seeing a rise in multi-product customers and retention rates exceeding 90%.

  • Regulatory Changes: Starting this October, mortgage professionals must comply with new AML/ATF obligations announced in Budget 2024.

  • Ontario’s Delinquency Spike: Mortgages in ‘severe delinquency’ have surged by 67% in Ontario.

  • Rising Stars: Canada’s top mortgage brokers under 35 were recognized by Canadian Mortgage Professionals in July.

Mortgage Rates  - Banks

  • 5-year fixed (High-Ratio) - 4.64% - RBC

  • 4-year fixed (High-Ratio) - 4.99% - National Bank, RBC

  • 3-year fixed (High-Ratio) - 5.09% - RBC

Mortgage Rates - Digital & Monoline Lenders

  • 5-year fixed (High-Ratio) - 4.34% - nesto

  • 4-year fixed (High-Ratio) - 4.64% - B2B Bank 

  • 3-year fixed (High-Ratio)  - 4.59% - Pine

Compare current rates here.

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