Canadian Mortgage Rates
| Term | Rate |
| Prime Rate (P) | 3.00% |
| Line of Credit (LOC) | 3.50% |
| 5 Year Closed Variable | P -0.15% |
| 5 Year Open Variable | P +0.75% |
| 6 Month Closed | 2.89% |
| 1 Year Closed | 2.79% |
| 2 Year Closed | 2.89% |
| 3 Year Closed | 2.89% |
| 4 Year Closed | 2.99% |
| 5 Year Closed | 3.19% |
| 7 Year Closed | 3.89% |
| 10 Year Closed | 3.89% |
YOUR CANADIAN MORTGAGE BROKER
November 30, 2010
Alberta's Housing among the most affordable in Canada: RBC Economics
TORONTO, Nov. 29 /CNW/ - Despite recording substantial affordability improvements since early 2008, housing demand in Alberta is still a shadow of its former self from just a few years ago and there are few signs that it is picking up meaningfully, according to the Housing Trends and Affordability report released today by RBC Economics Research.
"Alberta's housing market conditions remained quite weak in the third quarter and buyers have clearly emerged in the driver's seat, causing home prices to decline and contributing to further improvement affordability," said Robert Hogue, senior economist, RBC. "Homeownership in the province is among the more affordable in Canada in absolute terms and relative to historical averages which bodes well for housing demand once the provincial job market improves."
The RBC report notes that housing affordability in the province improved in the third quarter of 2010 with home prices declining between 0.6 per cent and 2.2 percentage points depending on the housing type.
The RBC Housing Affordability Measures for Alberta, which capture the province's proportion of pre-tax household income needed to service the costs of owning a home, eased across all housing categories in the third quarter, more than reversing modest rises in the second quarter of 2010. The measure for the benchmark detached bungalow moved down to 32.5 per cent (a drop of 1.8 percentage points from the previous quarter), the standard condominium to 20.7 per cent (down 0.8 percentage points) and the standard two-storey home to 35.6 per cent (down 1.8 percentage points).
The RBC report notes that Calgary's weak housing demand mirrors the city's sluggish job market where employment during the last year was stagnant at best. Meanwhile, the supply of homes for sale continues to be plentiful maintaining the downward pressure on property values. Calgary home prices fell across all housing categories in the third quarter contributing to further improvements in affordability. RBC's affordability measures declined by 1.2 to 2.3 percentage points, representing the third consecutive drop for two-storey homes and condominiums.
"The good news is that the Calgary market is no longer running in reverse; however, the bad news is that it appears to be running in low gear," added Hogue. "Despite relatively affordable homeownership in Calgary, only modest improvements in home resales have recently occurred with levels moving up to those witnessed 10 years ago."
All provinces saw improvements in affordability in the third quarter, particularly in British Columbia where elevated property values amplified the effect of the decline in mortgage rates on monthly mortgage charges. Ontario also experienced some notable drops in homeownership costs, pushing down the RBC Measures below their long-term average in the province for bungalows and condominiums. Alberta and Manitoba are the only two provinces where the RBC Measures stand below their long-term average in all housing categories, indicating little stress in these markets.
RBC's Housing Affordability Measure for a detached bungalow in Canada's largest cities is as follows: Vancouver 68.8 per cent (down 5.4 percentage points from the last quarter), Toronto 47.2 per cent (down 3.0 percentage points), Montreal 41.7 per cent (down 1.3 percentage points), Ottawa 38.2 per cent (down 2.9 percentage points), Calgary 37.1 per cent (down 2.0 percentage points) and Edmonton 32.7 per cent (down 2.0 percentage points).
The RBC Housing Trends and Affordability Measure, which has been compiled since 1985, is based on the costs of owning a detached bungalow, a reasonable property benchmark for the housing market in Canada. Alternative housing types are also presented including a standard two-storey home and a standard condominium. The higher the reading, the more costly it is to afford a home. For example, an affordability reading of 50 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, take up 50 per cent of a typical household's monthly pre-tax income.
Click HERE for the complete article.
The full RBC Housing Affordability report is available online, as of 8 a.m. ET today.
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December 2, 2011; MCAP has announced an agreement to acquire the residential mortgage operations and certain related assets of ResMor Trust Company (ResMor). The transaction is expected to be completed in the first quarter of 2012 and is subject to regulatory approval and other customary closing conditions. [ Read more... ]
October 25, 2011; The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. [ Read more... ]
October 19, 2011; Since 2008 the government of Canada has made mandatory changes to reduce the maximum amortization period from 40 years down to 35 and now down to 30 years for any insured mortgages.
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]
Alberta's Housing among the most affordable in Canada: RBC Economics
TORONTO, Nov. 29 /CNW/ - Despite recording substantial affordability improvements since early 2008, housing demand in Alberta is still a shadow of its former self from just a few years ago and there are few signs that it is picking up meaningfully, according to the Housing Trends and Affordability report released today by RBC Economics Research.
"Alberta's housing market conditions remained quite weak in the third quarter and buyers have clearly emerged in the driver's seat, causing home prices to decline and contributing to further improvement affordability," said Robert Hogue, senior economist, RBC. "Homeownership in the province is among the more affordable in Canada in absolute terms and relative to historical averages which bodes well for housing demand once the provincial job market improves."
The RBC report notes that housing affordability in the province improved in the third quarter of 2010 with home prices declining between 0.6 per cent and 2.2 percentage points depending on the housing type.
The RBC Housing Affordability Measures for Alberta, which capture the province's proportion of pre-tax household income needed to service the costs of owning a home, eased across all housing categories in the third quarter, more than reversing modest rises in the second quarter of 2010. The measure for the benchmark detached bungalow moved down to 32.5 per cent (a drop of 1.8 percentage points from the previous quarter), the standard condominium to 20.7 per cent (down 0.8 percentage points) and the standard two-storey home to 35.6 per cent (down 1.8 percentage points).
The RBC report notes that Calgary's weak housing demand mirrors the city's sluggish job market where employment during the last year was stagnant at best. Meanwhile, the supply of homes for sale continues to be plentiful maintaining the downward pressure on property values. Calgary home prices fell across all housing categories in the third quarter contributing to further improvements in affordability. RBC's affordability measures declined by 1.2 to 2.3 percentage points, representing the third consecutive drop for two-storey homes and condominiums.
"The good news is that the Calgary market is no longer running in reverse; however, the bad news is that it appears to be running in low gear," added Hogue. "Despite relatively affordable homeownership in Calgary, only modest improvements in home resales have recently occurred with levels moving up to those witnessed 10 years ago."
All provinces saw improvements in affordability in the third quarter, particularly in British Columbia where elevated property values amplified the effect of the decline in mortgage rates on monthly mortgage charges. Ontario also experienced some notable drops in homeownership costs, pushing down the RBC Measures below their long-term average in the province for bungalows and condominiums. Alberta and Manitoba are the only two provinces where the RBC Measures stand below their long-term average in all housing categories, indicating little stress in these markets.
RBC's Housing Affordability Measure for a detached bungalow in Canada's largest cities is as follows: Vancouver 68.8 per cent (down 5.4 percentage points from the last quarter), Toronto 47.2 per cent (down 3.0 percentage points), Montreal 41.7 per cent (down 1.3 percentage points), Ottawa 38.2 per cent (down 2.9 percentage points), Calgary 37.1 per cent (down 2.0 percentage points) and Edmonton 32.7 per cent (down 2.0 percentage points).
The RBC Housing Trends and Affordability Measure, which has been compiled since 1985, is based on the costs of owning a detached bungalow, a reasonable property benchmark for the housing market in Canada. Alternative housing types are also presented including a standard two-storey home and a standard condominium. The higher the reading, the more costly it is to afford a home. For example, an affordability reading of 50 per cent means that homeownership costs, including mortgage payments, utilities and property taxes, take up 50 per cent of a typical household's monthly pre-tax income.
Click HERE for the complete article.
The full RBC Housing Affordability report is available online, as of 8 a.m. ET today.
Mortgage Process
In Other Languages
Breaking News
More News
Insured mortgages (also known as high ratio mortgages) are mortgages that require less than 20% of the value of the home for the down payment or for refinancing, less than 20% in equity. The government backs these mortgages for the protection of the lenders. Currently with these mortgages the maximum amortization period is 30 years.
The media has covered how the amortization has been reduced to 30 years in depth, but they have failed to mention that this is not the case with other mortgage options. Mortgages that are often referred to as conventional or uninsured mortgages, which entail a 20% or greater down payment or equity, still offer amortization periods of up to 40 years. [ Read more... ]