Bank of Canada: Negative interest rate, ‘in the toolkit’

[RCI - October 9, 2020] Around the world economies are suffering from the effects of the pandemic and central banks have lowered interest rates as one measure to mitigate the effects. Here in Canada, several reports have indicated that an economic recovery which seemed to be underway in mid summer, has now stalled. COVID rates are up, especially in Canada’s two most populous and hardest hit provinces, Ontario and Quebec. Each has imposed new restrictions which further hurt the economy, especially businesses [...]

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How to get around Canada’s harsh new mortgage rules – Come July 1, 2020, it will be a lot harder to get the feds to back your mortgage.

[Financial Post - June 16, 2020] The tighter lending rules coming into force July 1 will make it harder for some Canadians to buy homes, but mortgage pros say panicking won’t do you any good. The Canadian Mortgage and Housing Corporation (CMHC) announced plans in early June to reduce borrowing limits, demand higher credit scores and restrict down payments for anyone who needs default insurance from the agency. That kind of insurance is mandatory for “high-ratio” buyers putting less than 20% [...]

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Major lenders begin to cut fixed mortgage rates

[Globe and Mail - April 16, 2020]   Fixed mortgage rates are creeping lower this week, as the funding markets that banks and other mortgage lenders use to raise money for loans have begun to normalize after weeks of outsized volatility. Toronto-Dominion Bank brought its five-year fixed rate down to 3.09 per cent from 3.24 per cent this week, and several other major lenders including Royal Bank of Canada and MCAP have also reduced their rates. Five-year fixed-rate mortgages ranged between 2.39 [...]

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