May 2013 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.

Global economic growth has evolved largely as anticipated in the Bank’s April Monetary Policy Report (MPR).  In the United States, the economic expansion is progressing at a modest pace, with continued strengthening in private demand partly offset by fiscal consolidation. Japan’s economy is beginning to respond to significant policy stimulus. Europe, in contrast, remains in recession. Growth in China has continued to ease from very strong rates, weighing somewhat on global commodity prices. The Bank continues to expect global economic activity to grow modestly in 2013 before strengthening over the following two years.

In Canada, recent economic indicators suggest that growth in the first quarter was stronger than the Bank projected in April. For the year as a whole, growth is expected to remain broadly in line with the Bank's MPR forecast. Over the projection horizon, consumer spending is expected to grow at a moderate pace, business investment to grow solidly, and residential investment to decline further from historically high levels. Growth in total household credit is slowing and the Bank continues to expect that the household debt-to-income ratio will stabilize near current levels. Exports are projected to continue to recover, but to be restrained by subdued foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.

Core inflation is in line with the April MPR projection, while total CPI inflation has been slightly weaker. Both total and core inflation are expected to remain subdued in coming quarters before gradually rising to 2 per cent by mid-2015 as the economy returns to full capacity and inflation expectations remain well-anchored.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent.  With continued slack in the Canadian economy, the muted outlook for inflation, and the constructive evolution of imbalances in the household sector, the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required, consistent with achieving the 2 per cent inflation target.

The next scheduled date for announcing the overnight rate target is 17 July 2013.

Source: Bank of Canada

The rate has been at this level for 22 consecutive policy meetings, dating back to September 2010.

Mortgages: Closed, variable to 5 years
Financial InstitutionTerm
Variable6 Months1 Year2 Years3 Years4 Years5 Years
AGF Trust - 4.650 3.040 3.200 3.240 3.340 3.490
ATB Financial 2.600 4.000 3.100 3.140 3.550 4.390 3.040
Alterna Bank 3.000 4.000 3.050 3.090 3.090 2.990 3.090
Alterna Savings 3.000 4.000 3.050 3.090 3.090 2.990 3.090
Bank of Montreal 3.100 4.000 3.000 3.040 3.550 4.540 5.140
Bank of Nova Scotia 3.100 4.550 3.750 3.890 3.990 4.390 4.990
Boomerang Credit Union 3.200 - 3.000 3.040 2.990 4.540 3.240
Bridgewater Bank - - 3.240 3.390 2.900 3.370 3.140
CIBC Mortgages 3.200 4.450 3.000 3.140 3.550 4.390 5.140
Caisses Desjardins 3.200 4.400 3.090 3.140 3.550 4.540 5.140
Canadian Western Bank 3.200 4.000 3.000 3.040 3.550 4.540 5.140
Canadian Western Trust 3.200 4.000 3.000 3.040 3.550 4.540 5.140
DUCA Financial Services 3.000 - 3.100 3.150 3.150 2.970 2.970
Effort Trust - 4.450 3.250 3.600 3.900 4.500 4.950
Equitable Trust - - 3.000 3.040 3.550 4.540 5.140
First Calgary Financial - 4.000 2.390 2.670 2.790 2.890 2.950
First National Financial 2.800 3.950 2.740 2.690 2.790 2.990 2.990
FirstOntario Credit Un. 2.790 4.240 2.990 3.140 3.190 3.240 2.890
HSBC Bank Canada 3.100 4.450 3.600 3.950 4.450 4.990 5.240
Home Trust Company - 3.490 2.740 2.490 2.790 2.990 2.890
ICICI Bank Canada 3.050 - 3.150 3.650 3.640 3.690 3.440
ING Direct 3.000 - 3.000 3.000 2.790 2.990 3.080
Investors Group Trust 3.000 4.000 3.000 3.140 3.550 4.540 5.140
Laurentian Bank Canada 3.200 4.400 3.090 3.140 3.550 4.540 5.140
League Svgs & Mortgage - 4.000 2.890 2.890 2.890 3.090 2.990
Libro Financial Group - 3.900 3.230 3.230 3.230 3.230 3.230
London Life 3.000 4.000 3.000 3.140 3.550 4.540 5.140
Manulife Bank 3.000 4.450 3.000 3.050 3.100 3.100 3.090
Manulife Trust - 4.450 3.000 3.050 3.100 3.100 3.090
Meridian Credit Union 2.850 4.450 3.100 3.140 3.700 2.980 3.190
National Bank 3.200 4.400 3.100 3.140 3.550 4.540 5.140
Ontario Civil Service CU 3.000 6.000 2.990 3.090 3.140 3.090 3.090
PACE Savings & Credit Un - 4.000 3.000 3.040 3.550 4.540 5.140
Parama Credit Union 2.900 - 3.000 3.000 3.150 3.250 3.250
Peace Hills Trust - 4.500 3.100 3.350 3.550 3.850 3.950
President's Choice Fin'l 3.200 6.040 3.140 3.150 3.190 3.300 3.390
RMG Mortgages 3.000 - 2.890 2.890 2.990 3.090 3.190
Royal Bank of Canada 3.000 4.000 3.000 3.040 3.550 4.540 5.140
Servus Credit Union - 4.000 3.000 3.040 3.550 4.390 5.140
Steinbach Credit Union - - 2.500 2.600 2.700 2.800 3.000
T-D Mortgage 3.200 4.000 3.000 3.040 3.550 4.540 5.140
Teachers Credit Union - - 2.990 3.040 3.490 3.890 4.090
Windsor Family C.U. - 4.450 3.000 3.050 3.550 4.540 5.140
Your Neighbourhood C.U. - - 3.150 3.250 3.350 3.390 3.190

Prepared by CANNEX on May 29, 2013 at 10:30:30 ET.
This information is current as of the date and time posted and is subject to change without notice.
© Copyright 2013 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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