TD Canada Trust announced their lowering their fixed mortgages rates effective tomorrow January 29, 2010. The biggest changes is the -0.20% change on the 3 year fixed rate to 4.30%. They are the most recent of the big banks dropping their posted rates this week.

TD’s recently lower mortgage rates include the following:

TD also has a 5 year fixed special on their website for 4.24%, which compares to the lowest 3.75% 5 year fixed available here. Their 5 year closed variable rate remains at Prime (2.25%).

RateSupermarket.ca was founded to provide transparency to a very complex mortgage industry. We are constantly working hard with our lender and broker partners to provide as much detailed information as possible in our Canadian mortgage rate comparison searches over and above the latest, update rate information. This includes further details such as prepayment privileges, portability, assumability and other options that are also important in determining which mortgage product is right for your own situation.

We are pleased to announce the latest update we’ve developed and released on the site is the “Details & offers” section in the mortgage rates search results as shown below:

Details & offers

The idea here is for our partners to include any specific details and special offers that are available for the mortgage rate their listing with us. Examples of details that can appear are:

• Quick closes – if the rate listed is a discounted special with a specific closing date needed (ie. within 30 days)
• Prepayment details – which outlines the amount stated in a percentage (%) that you can can prepay ahead of schedule without penalty both monthly and annually
• Usually stated as 20%/20% with the 1st term for monthly prepayments and the 2nd for annual prepayments
• So 20/20 or 20%/20% means you can over pay 20% of the mortgage over and above your monthly and annual payments respectively
• Special offers – such as free appraisals, if any closing costs are covered by the lender or broker and so on

We have also included the “Details & Offers” information on the best mortgage rates page, to help you see what is included with the best products on offer.

We hope you find this information useful and we will keep you updated as we add more features to try and make our comparison results as detailed and accurate as possible.

Happy mortgage shopping.

Kelvin

Today, in an interiew with CTV’s Question Period, to be aired next week, Canadian Finance Minister, Jim Flaherty, said that the Canadian government is looking at the changing regulations in the mortgage market and “measures will be taken if there’s evidence of excessive demand in the housing market”.

This comes after the Bank of Canada’s announcement last week that they are concerned that Canadian consumers are taking on too much household debt at the moment, due to low interest rates, especially mortgage rates which are currently near all time lows. And home owners need to start factoring in an increase in interest and mortgage rates (2-4%) over the next few years, to make sure they can still handle their debt payments.

The Finance Minister specifically identified two measures that could be taken:

1. Raising the minimum down payment from 5% ‘to a higher figure’

What this means is that the government would be forcing Canadians to save more money in order to afford a higher down payment on any house purchases. For example, the minimum deposit on a $300,000 mortgage today is 5% or $15,000. Although no specfic number was identified today, if this were to go up to 10%, the minimum deposit needed would be $30,000 (10%).

This would force Canadians to pay higher down payments, thereby, enforcing more financial prudence before they could buy a house, and would reduce the number of people who could qualify for a mortgage, which would acheive there goal to slow down the housing market.

2. Reduce the amortization period ‘from a maximum of 35 years to something less’

The amortization period is the number of years a mortgage holder takes to pay back the loan. The current maximum term is 35 years (reduced from 40 years in October 2008), and if this were reduced (again no specific number was identified) to 30 years, that would effectively increase monthly mortgage payments, as you would have less time to pay the home loan back.

What is the government trying to do?

Flaherty is basically looking at ways to try and cool down the housing market if it gets out of hand. So this is a warning shot towards the main driver at the moment, low mortgage rates. As Flaherty can’t control mortgage rates, this is the Bank of Canada’s job and they are independent, he’s looking at changing regulatory measures within his control that will curb the enthusiasm for buying houses. Raising the minimum downpayment will reduce the number of people who could qualify for a mortgage, especially at the lower end of the market, where new and first time home buyers who are just on the brink of being able to buy a house, won’t be able too.

While decreasing the maximum amortization period would, increase the minimum monthly payments home owners could make on their mortgage, again decreasing the number if people who could qualify.

Is this good or bad?

Looking at the measures seperately, we believe Good and Bad.

Taking the first one – increasing the required deposit amount. We believe this is a good thing. As shown in our example above, if someone were forced to save an extra $15,000 to take out a $300,000 mortgage, they would have to save or borrow more money from family and friends, making it harder for them to buy, especially for first time home buyers. This would force more prudence, reduce the number of people able to qualify for a mortgage and provide a more stable, less leveraged mortgage market.

Secondly, decreasing the maximum amortization period, could put homeowners in a challenging situation when rates increase in the future, as the government has forecasted. Many mortgage holders at the moment who are paying back their home loans over 35 years, can actually qualify or afford to repay based on a 25 year term with higher payments. They choose a longer repayment term as it provides more flexibility and reduces risk – as they can increase payments when times are good and reduce them when times are bad. Taking this option away and making them pay higher amounts all the time simply increases their risk, which could put added pressure on people when rates increase.

As always, make sure to compare mortgage rates and speak to a licensed mortgage specialist about your personal situation before making any decisions on your mortgage

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RBC lowered their mortgage rates again, and they are effective today, December 9, 2009. This comes the day after the Bank of Canada announced they were keeping the target for the overnight rate steady @ 0.25%.

Fixed Rate Mortgages

One-year closed: 3.40% (-0.20%)

Four-year closed: 5.14% (-0.05%)

Five-year closed: 5.49% (-0.10%)

Special Fixed Rate Offers*

Four-year closed: 4.09% (-0.05%)

Five-year closed : 4.19% (-0.10%)

Variable Rate Mortgages

Variable Closed RBC Prime + 0.00% (no change)

See how these mortgage rates changes stack up against the rest of the market and compare mortgage rates now.

* The rates indicated are special discounted rates and are not the
posted rates of Royal Bank of Canada. To calculate a rate discount
compare the Special Offer rate against the posted rate for the
applicable term.

Special Offers may be changed, withdrawn or extended at any time,
without notice. Not available in combination with any other rate
discounts, offers or promotions.

The other big banks moved to increase their fixed mortgage rates effective today, October 14, 2009, following RBC’s mortgage rates increase last week.

The fixed rate increases range from 0.10% – 0.35% while variable rates remained unchanged. The latest rates are now as follows:

Bank mortgage rate changes

Special rate offers

Scotiabank special offer

* The special discounted rates are not the posted rates of Scotiabank.
Rates are subject to change without notice. Offers may be withdrawn or
extended without notice and cannot be combined with any other rate
discounts, offers, or promotions. Mortgage funds must be advanced within
120 days of the application date. Other conditions may apply.

BMO Special offer

*This special discounted rate is not the posted rate of BMO Bank of
Montreal. Rate is subject to change without notice. Offer may be
withdrawn or extended without notice. Mortgage funds must be advanced
within 90 days of the application.

RBC moved to increase its fixed rate mortgages yesterday as follows:

Fixed mortgage rates

Variable rate mortgages

Variable Closed RBC Prime + 0.00% (no change)

Special rate offers

* The rates indicated are special discounted rates and are not the
posted rates of Royal Bank of Canada. To calculate a rate discount
compare the Special Offer rate against the posted rate for the
applicable term.

Special Offers may be changed, withdrawn or extended at any time,
without notice. Not available in combination with any other rate
discounts, offers or promotions.

Now lets watch to see when the other banks follow suit.

Check out how these rates compare versus the rest of the market and compare mortage rates now.

You’ve been to the open houses, explored various neighbourhoods and perhaps even checked out local schools before settling on the home of your dreams. Now it’s time to negotiate your first mortgage, a process which done right, could save you tens of thousands of dollars.

Today’s low interest rates have made buying that first home easier but it can also breed complacency. Rates will rise eventually so purchasers need to not only find a place they can afford, but ensure that they have negotiated the best mortgage terms possible and educated themselves on the document they are about to sign.

When it comes to mortgages, the first lesson is that not all mortgage lenders are created equal. That become quickly apparent to Naysan and Nahid Hariri, both 28, who are mortgage shopping for a $438,000 home now being built for them in Richmond Hill, Ont. “I found that a couple of institutions were a number of (interest) points higher than others,” he said.

The Hariris also found that the big banks, which tend to have higher posted mortgage rates than smaller financial institutions, were reluctant to lower their rates. “My understanding with banks is that if you have services with them, they tend to work out something better for you.” Because first-timers typically have less money parked with a particular institution, they tend not to have the leverage to demand lower rates.

Read the rest of the article here.

If you’ve been shopping around for a mortgage lately, you might’ve noticed that some offers from the country’s biggest banks are looking especially attractive, the Globe and Mail reported today.

Canadians have been handed a golden opportunity to snag mortgage rates at rock-bottom prices, but highly competitive lending is pushing overly optimistic opportunities on people who might not understand what they’re getting themselves into, suggest some members of the mortgage industry.

“The banks are coming out to try and be lucrative enough to pull clients in,” said Jeff Mayer, an agent at Mortgage Intelligence, a Toronto-area mortgage broker. “That being said, I still think everyone should be taking a step back and looking at what direction they should go in.”

Direction is something that a lot of Canadians could probably use these days when it comes to lenders, especially considering the lack of certainty that has engulfed the mortgage industry as of late.

Hardly a year ago, it seemed like a black cloud was gathering over lenders, with fears it would be impossible for some to even consider applying for a mortgage and worries they’d be shown the door before they’d even filled out the application.

Those concerns were pushed aside in a matter of months, and many Canadians in good financial standing can now secure very attractive rates. The question is, how was this shift possible in a recovering, yet still uncertain economy.

“It’s a knee-jerk reaction — Canadians are known for it,” Mr. Mayer explained of the lenders. “You’re going to see rates climb in the next three to four months, guaranteed.”

All of this talk about the interest rates climbing makes it especially unusual to see some banks drumming up attention for surprisingly low mortgage rates.

On Friday, Bank of Montreal (BMO-T54.02-0.29-0.53%) launched a promotional push for its five-year closed variable mortgage at 2.25 per cent, which it calls the “lowest rate in more than 30 years.”

“We think lower mortgage rates have played a key role in providing more affordability for home buyers, which has helped turn Canada’s housing market around from weaker levels earlier this year,” said Frank Techar, president of the bank’s personal and commercial banking division.

“We are trying to support our customers coming off of what we consider to be a pretty difficult year, in general for everyone.”

So far, the other Canadian banks haven’t moved to match BMO’s closed variable rate, though they’re offering other low and competitive rates on other types of mortgages.

“A year ago they (the banks) couldn’t do it because we were going through this huge credit crunch, so they had to cut the reins,” said Clay Gillespie, vice-president and portfolio manager at Rogers Group Financial in Vancouver. “Turns out our Canadian banks weathered the storm quite nicely, and we have a real estate market that’s still pretty vibrant.”

The banks have received extra help from Bank of Canada governor Mark Carney, who issued a conditional commitment to keep the policy rate at the record low of 0.25 per cent until next summer. That means the best mortgage rates will hold near their record lows for at least a little longer.

Read the rest of the article here .

Laurentian bank released a report earlier in the week outlining how they believe that the Canadian government will be forced to aggressively increase interest rates next year versus a slow, gradual return to “normal” rates.

They believe that:

The Bank of Canada’s rate announcement is tomorrow and many of the expert expect the Federal Bank to hold their target for the overnight rate steady at 0.25%. This means variable rates should, in theory, remain steady for the next little while. However, we’ve seen some variable rates come down to as low as Prime – 0.10% for a 4 year variable closed rate, with a 45 day quick close. This is the first variable rate offered below prime that we’ve seen for months and is great news for mortgage shoppers. Could this be a sign of confidence in an economic recovery from the banks? Or simply that inter bank lending is returning to normal and banks no longer need to hoarde cash.

We’ve also seen fixed mortgage rates come down in the past week as shown below. This is mainly attributable to the fact that the Government of Canada 5 year bond price has increased over the past week by 2.80%, reducing the yield, and enabling banks to drop 5 year rates. After speaking to a few brokers in the last day or so, they believe rates will come off a bit more in the near future. Again, it’s difficult to time these things, and if you do need a mortgage soon, it’s probably best to look into it now and get pre-approved, rather than trying to time the absolute bottom of the market.

You can keep track of the latest mortgage rates here, or through our Ratewatch service, which will send you a quick update whenever the best mortgage rates on the site change.

We’ll look out for the Bank of Canada announcement tomorrow and post the results as soon as we get them.