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Showing posts with label Mortgage Rates. Show all posts
Showing posts with label Mortgage Rates. Show all posts
Monday, 18 March 2013
Mortgage Rate Minder with Matthew Chan
Thursday, 27 September 2012
RBC's Covered Bonds vs Future Mortgage Rates
RBC’s Historic Covered Bonds 
(from Canadian Mortgage Trends)
The rate you pay on your mortgage largely depends on what it costs your lender to raise capital. That’s why RBC’s latest covered bond issuance is noteworthy.
RBC issued $2.5 billion worth of covered bonds on September 12.
(Covered bonds are bonds backed by both the issuer’s credit and a pool of mortgages, in this case RBC’s mortgages. If the lender/issuer goes under, investors can still rely on the mortgages to get their money back. Canadian banks sell covered bonds to generate funds to lend out as mortgages.)
RBC’s issuance was the world’s first SEC-registered covered bond, meaning it could be bought by U.S. mom and pop investors for the first time. This huge pool of buyers makes the bonds easier to trade and less expensive to issue.
Why does any of this matter? It matters because these covered bonds will lower RBC's funding costs, and the savings can theoretically be passed on to borrowers.
Read more here!
(from Canadian Mortgage Trends)
The rate you pay on your mortgage largely depends on what it costs your lender to raise capital. That’s why RBC’s latest covered bond issuance is noteworthy.
RBC issued $2.5 billion worth of covered bonds on September 12.
(Covered bonds are bonds backed by both the issuer’s credit and a pool of mortgages, in this case RBC’s mortgages. If the lender/issuer goes under, investors can still rely on the mortgages to get their money back. Canadian banks sell covered bonds to generate funds to lend out as mortgages.)
RBC’s issuance was the world’s first SEC-registered covered bond, meaning it could be bought by U.S. mom and pop investors for the first time. This huge pool of buyers makes the bonds easier to trade and less expensive to issue.
Why does any of this matter? It matters because these covered bonds will lower RBC's funding costs, and the savings can theoretically be passed on to borrowers.
Read more here!
Tuesday, 21 August 2012
RBC Boosts 5-year Rates!
RBC Boosts 5-year Rates
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| Melanie & Rob McLister |
Candadian Mortgage Trends
The nation’s largest mortgage lender is lifting some of its fixed rates.
RBC’s “Special Offer” 5-year fixed will rise 20 bps to 3.69%, effective tomorrow.
By contrast, the average deep discounted 5-year rate is now around 3.09-3.19% industry-wide.
RBC’s posted 5-year rate remains unchanged at 5.24%. Posted rates have generally hovered around 5.24% since May.
The bank’s 3-year posted rate is also rising by 20 bps.
These changes follow a 40 basis point jump in the 5-year bond yield, from its lows in July. (Bond yields usually guide fixed-rate mortgage pricing, except during unusual times—like periods of global financial risk.)
Apart from these and other recent rate increases, the next wave of fixed-rate hikes will likely not arrive unless 5-year yields break above the 1.60% mark. This chart will help you follow the bond market, if you’re interested.
Wednesday, 8 August 2012
Weekly Mortgage Rate Minder with Matthew Chan
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Tuesday, 24 July 2012
Weekly Rate Minder With Matthew Chan
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Which Way Are Mortgage Rates Headed?
Wanna know where rates are going? ... Look at 2 yr bond yields.by Steve Garganis
Probably the most popular question asked is, "where are rates heading?" Or "when will they go up?" Let's face it, if you have a mortgage or are invested in real estate, then you better the answer or understand what affects rates. After all, interest rates can make or break a housing market. We decided to take a few minutes to explain how you can follow the indicators that affect interest rate movement…. We won’t make you a Financial Expert, but you will gain a better understanding of what affects rate movements…
Read more of this post.
Monday, 23 July 2012
Banks to Wage Mortgage Wars?
Banks are tipping their hand as to just much appetite they still have for mortgage lending, with RBC pointing to the continuing low-rate environment and the offset it provides households swimming in debt.
“Despite debt rising to all-time highs, Statistics Canada’s debt-service ratio (calculated as interest payments on mortgage and non-mortgage debt as a per cent of personal disposable income) was 7.3 per cent in the first quarter of 2012, holding around the general level that has prevailed since the middle of 2009 and below the series’ long-run average of 8.1 per cent,” write RBC economists in their monthly analysis for July. “While there are historically elevated levels of debt in the economy, the benign interest-rate environment and sustained income growth means that households are not being overwhelmed by required debt-service payments.”
Independent analysts, now reading between the lines, suggest the statement indicates banks have little intention of easing their feet off the throttle. At least not in terms of aggressively pushing their mortgage product to consumers, despite the tighter mortgage rules and guidelines they and lenders face.
RBC’s emphasis on rates in the economic review also hints at the possibility of another spate of rate chopping and competition among lenders.
Brokers are already anticipating a resurgence in the rate wars as the market slows and the fight for borrowers heats up.
That would likely accrue to the benefit of deep-pocketed big banks and not the mono-lines that brokers increasingly depend on.
Still, brokers are just as confident that they increasingly have the upper hand in terms of quicker turnaround times and the growing realization that their customer service moves their value-proposition beyond rate.
Tuesday, 3 July 2012
Weekly Mortgage Rate Minder With Matthew Chan
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