January 2014 Mortgage Rates

The Bank of Canada announced on January 22nd 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 in Canada has moved further below the 2 per cent target, owing largely to significant excess supply in the economy and heightened competition in the retail sector. The path for inflation is now expected to be lower than previously anticipated for most of the projection period. The Bank expects inflation to return to the 2 per cent target in about two years, as the effects of retail competition dissipate and excess capacity is absorbed.

Global growth is expected to strengthen over the next two years, rising from 2.9 per cent in 2013 to 3.4 per cent in 2014 and 3.7 per cent in 2015. The United States will lead this acceleration, aided by diminishing fiscal drag, accommodative monetary policy and stronger household balance sheets. The improving U.S. outlook is affecting global bond, equity, and currency markets. Growth in other regions is evolving largely as projected in the Bank’s October Monetary Policy Report (MPR). Global trade growth plunged after 2011, but is poised to recover as global demand strengthens.

In Canada, growth improved in the second half of 2013. However, there have been few signs of the anticipated rebalancing towards exports and business investment. Stronger U.S. demand, as well as the recent depreciation of the Canadian dollar, should help to boost exports and, in turn, business confidence and investment. Meanwhile, recent data have been consistent with the Bank’s expectation of a soft landing in the housing market and a stabilization of household indebtedness relative to income.

Real GDP growth is projected to pick up from 1.8 per cent in 2013 to 2.5 per cent in both 2014 and 2015. This implies that the economy will return gradually to capacity over the next two years.

Although the fundamental drivers of growth and future inflation appear to be strengthening, inflation is expected to remain well below target for some time, and therefore the downside risks to inflation have grown in importance. At the same time, risks associated with elevated household imbalances have not materially changed. Weighing these considerations, the Bank judges that the balance of risks remains within the zone articulated in October, and therefore has decided to maintain the target for the overnight rate at 1 per cent. The timing and direction of the next change to the policy rate will depend on how new information influences this balance of risks.

The next scheduled date for announcing the overnight rate target is 5 March 2014. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 16 April 2014.

 

Mortgages: Closed, variable to 5 years
Financial InstitutionTerm
Variable6 Months1 Year2 Years3 Years4 Years5 Years
ATB Financial 2.700 4.000 2.940 2.890 2.990 3.290 3.690
Alterna Bank 3.000 4.000 3.090 3.140 3.190 3.350 3.450
Alterna Savings 3.000 4.000 3.090 3.140 3.190 3.350 3.450
Bank of Montreal 3.000 4.000 3.140 3.040 3.850 4.640 5.240
Bank of Nova Scotia 3.100 4.550 3.750 3.890 3.990 4.390 4.990
Bridgewater Bank - - 4.800 4.700 4.800 - 5.250
CIBC Mortgages 3.000 4.450 3.090 3.040 3.750 4.590 5.240
Caisses Desjardins 3.000 4.400 3.140 3.240 3.850 4.640 5.240
Canadian Western Bank 3.200 4.000 3.140 3.140 3.850 4.640 5.240
Canadian Western Trust 3.200 4.000 3.140 3.140 3.850 4.640 5.240
Comtech Credit Union - 6.200 2.990 3.250 3.290 3.240 3.590
DUCA Financial Services 3.000 - 3.090 3.140 3.290 3.390 3.580
Effort Trust - 4.450 3.250 3.600 3.950 4.700 4.950
Equitable Bank - - 3.140 3.040 3.750 4.640 5.240
First Calgary Financial - 4.000 2.890 2.890 3.190 3.390 3.690
First National Financial 2.600 3.950 2.990 2.690 2.990 3.390 3.490
FirstOntario Credit Un. 2.700 4.240 3.090 3.140 3.290 3.340 3.490
HSBC Bank Canada 3.100 4.450 3.600 3.950 4.450 4.990 5.340
Home Trust Company 2.600 3.950 2.890 2.890 3.090 3.390 3.390
ICICI Bank Canada 3.050 - 3.150 3.650 3.640 3.690 3.890
ING Direct 3.000 - 3.190 3.240 3.590 3.690 4.090
Investors Group Trust 3.000 4.200 3.140 3.140 3.900 4.640 5.240
Laurentian Bank Canada 3.000 4.400 3.140 3.140 3.850 4.640 5.240
League Svgs & Mortgage - 4.000 3.140 3.040 3.340 3.590 3.790
Libro Financial Group - 3.900 3.150 3.200 3.300 3.450 3.680
London Life 3.000 4.200 3.140 3.140 3.900 4.640 5.240
Manulife Bank 2.800 4.450 3.000 3.050 3.100 3.400 3.590
Manulife Trust - 4.450 3.000 3.050 3.100 3.400 3.590
Meridian Credit Union 2.750 4.000 3.090 3.140 3.650 3.390 3.490
National Bank 3.100 4.400 3.140 3.140 3.950 4.640 5.240
Ontario Civil Service CU 3.000 6.000 3.090 3.090 3.140 3.690 3.690
PACE Savings & Credit Un - 4.000 3.140 3.140 3.950 4.640 5.240
Parama Credit Union 2.850 - 3.050 3.100 3.250 3.400 3.600
Peace Hills Trust - 4.500 3.150 3.500 3.950 3.950 4.150
President's Choice Fin'l 3.000 6.190 3.390 3.240 3.590 3.690 4.090
RMG Mortgages 3.000 - 2.890 2.890 2.990 3.090 3.590
Royal Bank of Canada 3.000 3.140 3.140 3.040 3.750 4.640 5.240
Servus Credit Union - 4.000 3.140 3.040 3.850 4.640 5.240
Steinbach Credit Union - - 2.700 3.000 3.100 3.250 3.450
T-D Mortgage 3.000 4.000 3.090 3.040 3.750 4.640 5.240
Teachers Credit Union - - 3.100 3.090 3.550 3.990 4.190
Windsor Family C.U. - 4.450 3.140 3.140 3.750 3.950 4.290
Your Neighbourhood C.U. - - 3.400 3.500 3.600 3.690 3.640

Prepared by CANNEX on January 30, 2014 at 00:30:20 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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