July 2014 Mortgage Rates

The Bank of Canada on July 16th 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.

Total CPI inflation has moved up to around the 2 per cent target in recent months, sooner than expected. Core inflation has also increased but remains below 2 per cent. Recent higher inflation is attributable to the temporary effects of higher energy prices, exchange rate pass-through and other sector-specific shocks, rather than to any change in domestic economic fundamentals. Over the next two years, inflation is projected to fluctuate around 2 per cent as these temporary effects ease and the downward pressure on inflation from economic slack and heightened retail competition gradually dissipates.

The global economy is on a lower growth track than was foreseen at the time of the April Monetary Policy Report. Serial disappointment with economic performance during the past several years has mainly reflected the impact of private-sector deleveraging, fiscal consolidation and, especially, the lingering effect of uncertainty on business investment and trade. Nevertheless, the Bank continues to project that global growth will gather momentum as these headwinds abate.

Given the downgrade to the global outlook, economic activity in Canada is now projected to be a little weaker than previously forecast. However, the Bank still expects that the lower Canadian dollar and a projected strengthening in global demand will lead to a pickup in Canadian exports and business investment and, eventually, a more sustainable growth track. Meanwhile, household imbalances continue to evolve constructively and recent data are broadly consistent with a soft landing in Canada’s housing market. Real GDP growth is projected to average around 2 1/4 per cent during 2014–2016. Consequently, the economy is expected to reach full capacity around mid-2016, a little later than anticipated in April.

For the inflation target to be achieved on a sustained basis in 2016, the economy must reach and remain at full capacity. Closing the output gap over the time frame described above is reliant on continued stimulative monetary policy and hinges critically on stronger exports and business investment. Meanwhile, the risks associated with household imbalances, while evolving in a constructive way, are still elevated. Weighing these considerations within the Bank’s risk-management framework, the monetary policy stance remains appropriate and the target for the overnight rate remains at 1 per cent. The Bank is neutral with respect to the timing and direction of the next change to the policy rate, which will depend on how new information influences the outlook and assessment of risks.

Source: Bank of Canada

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 3.040 3.290
Alterna Bank 2.600 4.000 2.980 2.980 2.980 2.940 3.190
Alterna Savings 2.600 4.000 2.980 2.980 2.980 2.940 3.190
Bank of Montreal 3.000 4.000 3.140 3.040 3.850 4.390 4.990
Bank of Nova Scotia 3.100 4.550 3.290 3.140 3.440 3.940 4.790
Bridgewater Bank - - 4.800 4.700 5.250 - 5.250
CIBC Mortgages 3.000 4.450 2.990 2.940 3.650 4.240 4.990
Caisses Desjardins 3.000 4.400 3.140 3.240 3.750 4.390 4.890
Canadian Western Bank 3.200 4.000 3.140 3.040 3.750 4.390 4.990
Canadian Western Trust 3.200 4.000 3.140 3.040 3.750 4.390 4.990
Comtech Credit Union - 6.200 2.990 3.250 3.290 2.990 3.090
DUCA Financial Services 2.550 - 3.090 3.000 2.990 3.090 2.990
Effort Trust - 4.450 3.450 3.600 3.700 4.600 4.950
Equitable Bank - - 3.140 3.040 3.750 4.540 4.940
First Calgary Financial - 4.000 2.890 2.890 3.190 3.390 3.290
First National Financial 2.450 3.950 2.990 2.590 2.690 2.770 3.090
FirstOntario Credit Un. 2.600 4.240 3.090 3.140 3.290 2.840 3.190
HSBC Bank Canada 3.100 4.450 3.600 3.950 4.450 4.990 5.340
Home Trust Company 2.500 3.950 2.890 2.890 2.790 2.940 2.990
ICICI Bank Canada 3.050 - 3.150 3.650 3.640 3.690 3.890
Investors Group Trust 3.000 4.200 3.140 3.140 3.750 4.640 4.990
Laurentian Bank Canada 3.000 4.400 3.140 3.140 3.500 4.390 4.790
League Svgs & Mortgage - 4.000 3.140 3.040 3.150 3.140 3.450
Libro Credit Union - 3.900 3.150 3.200 3.300 3.450 2.990
London Life 3.000 4.200 3.140 3.140 3.750 4.640 4.990
Manulife Bank 2.700 4.450 3.000 3.050 3.100 3.140 3.190
Manulife Trust - 4.450 3.000 3.050 3.100 3.140 3.190
Meridian Credit Union 2.750 4.000 3.090 3.140 3.650 2.950 3.190
National Bank 3.000 4.400 3.140 3.040 3.750 4.390 4.790
Ontario Civil Service CU 3.000 6.000 3.090 3.090 3.070 3.240 3.240
PACE Savings & Credit Un - 5.000 2.990 3.040 2.790 2.940 3.090
Parama Credit Union 2.850 - 2.850 3.050 3.150 3.250 3.400
Peace Hills Trust - 4.500 3.150 3.500 3.950 3.950 3.490
President's Choice Fin'l 3.000 6.190 3.190 2.940 3.590 4.040 4.440
Royal Bank of Canada 3.000 3.140 3.140 3.040 3.750 4.540 4.940
Servus Credit Union - 4.000 3.140 3.040 3.750 4.240 4.790
Steinbach Credit Union - - 2.650 2.800 2.900 2.950 3.100
T-D Mortgage 3.000 4.000 3.090 3.040 3.440 3.940 4.790
Tangerine 3.000 - 3.190 3.240 3.490 3.690 3.790
Windsor Family C.U. - 4.450 3.140 3.140 3.750 3.950 4.290
Your Neighbourhood C.U. - - 2.890 2.990 3.190 3.350 3.240

Prepared by CANNEX on August 14, 2014 at 00:32:47 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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