June 2014 Mortgage Rates

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.

Total CPI inflation has moved up to around the 2 per cent target, sooner than anticipated in the Bank’s April Monetary Policy Report (MPR), largely due to the temporary effects of higher energy prices and exchange rate pass-through. Core inflation remains significantly below 2 per cent although it has drifted up slightly, partly owing to past exchange rate movements.

Global economic growth in the first quarter of 2014 was weaker than anticipated in the MPR and recent developments give slightly greater weight to downside risks. The U.S. economy is rebounding after a pause in the first quarter, but there could be slightly less underlying momentum than previously expected. Globally, long-term bond yields have continued their decline, reflecting in part growing market anticipation that interest rates will remain low over the long term. This, along with buoyant stock markets and tight credit spreads, indicates that financial conditions remain very stimulative.

The Canadian economy grew at a modest rate in the first quarter, held back by severe weather and supply constraints. The ingredients for a pickup in exports remain in place, including the lower Canadian dollar and an anticipated strengthening of foreign demand. Improved corporate profits, especially in exchange rate-sensitive sectors, should also support higher business investment in the coming quarters. There are continued signs of a soft landing in the housing market and a constructive evolution of household imbalances. We still expect excess supply to be absorbed gradually as the fundamental drivers of growth and inflation in Canada strengthen.

Weighing recent higher inflation readings against slightly increased risks to economic growth leaves the downside risks to the inflation outlook as important as before. At the same time, the risks associated with household imbalances remain elevated. The Bank judges that the balance of risks remains within the zone for which the current stance of monetary policy is appropriate 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 the balance of risks.

Information note:

The next scheduled date for announcing the overnight rate target is 16 July 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 at the same time.

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 3.390
Alterna Bank 2.600 4.000 2.980 2.980 2.980 2.940 3.140
Alterna Savings 2.600 4.000 2.980 2.980 2.980 2.940 3.140
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 3.090 3.040 3.750 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 2.990
DUCA Financial Services 2.550 - 3.090 3.000 3.090 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 2.500 3.950 2.990 2.590 2.790 2.770 3.090
FirstOntario Credit Un. 2.700 4.240 3.090 3.140 3.290 2.890 3.040
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 3.040
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 3.200 3.140 3.490
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 2.600 4.000 3.090 3.140 3.650 4.390 2.950
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 - 4.000 2.990 2.790 2.790 2.940 3.140
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 3.390 3.240 3.590 3.690 4.090
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 3.990
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

 


 

 

 

There are no comments

Thank you! Your comment has been submitted and is awaiting approval.

Donald Lum

Donald Lum

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
Contact Me