December 2014 Mortgage Rates

The Bank of Canada announced on December 3rd, 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.

Inflation has risen by more than expected. The increase in inflation over the past year is largely due to the temporary effects of a lower Canadian dollar and some sector-specific factors, notably telecommunications and meat prices. Underlying inflation has edged up but remains below 2 per cent.

The U.S. economy has clearly strengthened, particularly business investment, which has benefited Canada’s exports. Growth in the rest of the world, in contrast, continues to disappoint, leading authorities in some regions to deploy further policy stimulus. Oil prices have continued to fall, due to both supply and demand developments. In this context, global financial conditions have eased further.

Canada's economy is showing signs of a broadening recovery. Stronger exports are beginning to be reflected in increased business investment and employment. This suggests that the hoped-for sequence of rebuilding that will lead to balanced and self-sustaining growth may finally have begun. However, the lower profile for oil and certain other commodity prices will weigh on the Canadian economy.

The net effect of these recent developments, together with upward revisions to historical data, is that the output gap appears to be smaller than the Bank had projected in the October Monetary Policy Report (MPR). However, the labour market continues to indicate significant slack in the economy.

While inflation is at a higher starting point relative to the October MPR, weaker oil prices pose an important downside risk to the inflation profile. This is tempered by a stronger U.S. economy, Canadian dollar depreciation, and recent federal fiscal measures. Household imbalances, meanwhile, present a significant risk to financial stability. Overall, the balance of risks remains within the zone for which the current stance of monetary policy is appropriate and therefore the target for the overnight rate remains at 1 per cent.

Source: The Bank of Canada


Mortgages: Closed, Variable to 5 years
Financial Institution Variable 6 Months 1 Year 2 Years 3 Years 4 Years 5 Years
ATB Financial 2.7 4 2.94 2.89 2.99 3.04 3.24
Alterna Bank 2.6 4 2.98 2.98 2.98 2.94 3.19
Alterna Savings 2.6 4 2.98 2.98 2.98 2.94 3.19
Bank of Montreal 3 4 3.14 3.04 3.85 4.39 4.99
Bank of Nova Scotia 3.1 4.55 3.29 3.14 3.44 3.94 4.79
Bridgewater Bank - - 5.3 5.3 5.3 - 5.3
CIBC Mortgages 3 4.45 2.99 2.94 3.65 4.24 4.99
Caisses Desjardins 3 4.4 3.14 3.24 3.75 4.39 4.89
Canadian Western Bank 3.2 4 3.14 3.04 3.65 4.2 4.99
Canadian Western Trust 3.2 4 3.14 3.04 3.65 4.2 4.99
Comtech Credit Union - 6.2 2.99 3.25 3.29 2.99 2.99
DUCA Financial Services 2.55 - 3.09 3 2.99 3.09 2.99
Effort Trust - 4.45 3.45 3.6 3.7 4.6 4.95
Equitable Bank - - 3.14 3.14 3.95 4.54 4.94
First Calgary Financial - 4 2.89 2.89 3.19 3.39 3.29
First National Financial 2.45 3.95 2.99 2.59 2.69 2.89 3.09
FirstOntario Credit Un. 2.6 4.24 3.09 3.14 3.29 2.94 3.09
HSBC Bank Canada 3.1 4.45 3.54 3.04 3.54 4.24 4.94
Home Trust Company 2.5 3.95 2.89 2.89 2.79 2.94 2.95
ICICI Bank Canada 3.05 - 3.15 3.65 3.64 3.69 3.89
Investors Group Trust 3 4.2 3.14 3.14 3.75 4.64 4.99
Laurentian Bank Canada 3 4.4 3.14 3.14 3.5 4.39 4.79
League Svgs & Mortgage - 4 3.14 3.04 3.1 3.08 3.19
Libro Credit Union - 3.9 3.15 3.15 3.15 3.2 3.25
London Life 3 4.2 3.14 3.14 3.75 4.64 4.99
Manulife Bank 2.7 4.45 3 3.04 3.04 3.09 3.09
Manulife Trust - 4.45 3 3.04 3.04 3.09 3.09
Meridian Credit Union 2.75 4 3.09 2.65 3.65 3.29 3.19
National Bank 3 4.4 3.14 3.04 3.75 4.39 4.79
Ontario Civil Service CU 3 6 3.09 3.09 3.07 3.24 3.29
PACE Savings & Credit Un - 5 2.89 2.59 2.79 2.94 3.09
Parama Credit Union 2.85 - 2.85 3.05 3.15 3.25 3.4
Peace Hills Trust - 4.5 3.15 3.5 3.75 3.85 3.95
President's Choice Fin'l 3 6.19 3.19 2.94 3.59 4.04 4.44
Royal Bank of Canada 3 3.14 3.14 3.14 3.95 4.54 4.94
Servus Credit Union - 4 3.09 3.04 3.44 3.94 4.79
Steinbach Credit Union - - 2.65 2.8 2.9 2.95 3.1
T-D Mortgage 3 4 3.09 3.04 3.44 3.94 4.79
Tangerine 3 - 3.19 3.24 3.49 3.69 3.79
Windsor Family C.U. - 4.45 3.14 3.14 3.75 3.95 3.79
Your Neighbourhood C.U. - - 2.99 3 3.29 3.45 3.34
Prepared by CANNEX on December 6, 2014 at 00:30:26 ET.
This information is current as of the date and time posted and is subject to change without notice.
© Copyright 2014 CANNEX Financial Exchanges Limited. All rights reserved.

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Donald Lum

Donald Lum

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CENTURY 21 Leading Edge Realty Inc., Brokerage*
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