October 2013 Mortgage Rates

The Bank of Canada announced on September 4, 2013 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.

"The global economy continues to expand broadly as expected, but its dynamic has moderated. In the United States, the process of normalization of long-term interest rates has begun in the context of stronger private domestic demand. Recent data, however, point to slightly less momentum overall than anticipated. In Europe, there are early signs of a recovery, and Japan’s situation remains promising. In a number of emerging market economies, financial volatility has increased, adding uncertainty to growth prospects, although China continues to grow at a solid pace. Commodity prices have been relatively stable, with geopolitical stresses putting some upward pressure on global oil prices.

Uncertain global economic conditions appear to be delaying the anticipated rotation of demand in Canada towards exports and investment. While the housing sector has been slightly stronger than anticipated, household credit growth has continued to slow and mortgage interest rates are higher, pointing to a continued constructive evolution of household imbalances. Looking through the choppiness of the recent data, the level of Canada’s GDP is largely consistent with the Bank’s July forecast. The output gap is expected to begin to narrow in 2014.

Inflation in Canada remains subdued. With inflation expectations well-anchored, both core and total CPI inflation are expected to return slowly to 2 per cent as the output gap closes.

Against this backdrop, the Bank has decided to maintain the target for the overnight rate at 1 per cent.  As long as there is significant slack in the Canadian economy, the inflation outlook remains muted, and imbalances in the household sector continue to evolve constructively, the considerable monetary policy stimulus currently in place will remain appropriate. Over time, as the normalization of these conditions unfolds, a gradual normalization of policy interest rates can also be expected, consistent with achieving the 2 per cent inflation target."

According to the Financial Post on October 3, 2013 "The economists say remarks by the central bank’s senior deputy governor earlier this week suggest the bank’s view is now that the economy’s spare capacity may remain into sometime in 2016.

Even then, the economists argue the economy is unlikely to overshoot into excess demand, so there would be no hurry for the bank to raise rates.

Most analysts see the bank keeping its policy rate at one per cent — where it’s been for three years — until sometime late in 2014 or early 2015, but few believe it will stay at such stimulative level for another two or three years.

The next scheduled date for announcing the overnight rate target is 23 October 2013.

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 3.190 3.590 3.840
Alterna Bank 3.000 4.000 3.140 3.140 3.540 3.590 3.790
Alterna Savings 3.000 4.000 3.140 3.140 3.540 3.590 3.790
Bank of Montreal 3.000 4.000 3.140 3.140 3.950 4.740 5.340
Bank of Nova Scotia 3.100 4.550 3.750 3.890 3.990 4.390 4.990
Boomerang Credit Union 3.200 - 3.400 3.500 3.600 3.690 3.740
Bridgewater Bank - - 4.590 4.740 4.700 - 5.400
CIBC Mortgages 3.000 4.450 3.090 3.140 3.950 4.590 5.340
Caisses Desjardins 3.000 4.400 3.140 3.290 3.950 4.740 5.340
Canadian Western Bank 3.200 4.000 3.140 3.140 3.950 4.540 5.340
Canadian Western Trust 3.200 4.000 3.140 3.140 3.950 4.540 5.340
Comtech Credit Union - 6.200 2.990 3.250 3.290 3.240 3.450
DUCA Financial Services 3.000 - 3.100 3.150 3.190 3.290 3.480
Effort Trust - 4.450 3.250 3.600 3.950 4.700 4.950
Equitable Bank - - 3.140 3.140 3.950 4.740 5.340
First Calgary Financial - 4.000 2.890 2.890 3.190 3.390 3.790
First National Financial 2.600 3.950 2.990 2.790 3.090 3.390 3.790
FirstOntario Credit Un. 2.700 4.240 3.090 3.140 3.440 3.390 3.590
HSBC Bank Canada 3.100 4.450 3.600 3.950 4.450 4.990 5.340
Home Trust Company 2.700 3.950 2.890 2.890 3.090 3.390 3.690
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 3.950 4.690 5.340
Laurentian Bank Canada 3.200 4.400 3.140 3.190 3.950 4.740 5.340
League Svgs & Mortgage - 4.000 2.990 2.990 3.190 3.590 3.790
Libro Financial Group - 3.900 3.050 3.200 3.300 3.450 3.680
London Life 3.000 4.200 3.140 3.140 3.950 4.690 5.340
Manulife Bank 3.000 4.450 3.000 3.250 3.400 3.500 3.790
Manulife Trust - 4.450 3.000 3.250 3.400 3.500 3.790
Meridian Credit Union 2.750 4.000 3.090 3.140 3.650 3.490 3.590
National Bank 3.100 4.400 3.140 3.140 3.950 4.740 5.340
Ontario Civil Service CU 3.000 6.000 3.090 3.090 3.140 3.690 3.790
PACE Savings & Credit Un - 4.000 3.140 3.140 3.950 4.740 5.340
Parama Credit Union 2.850 - 2.900 2.690 3.200 3.450 3.550
Peace Hills Trust - 4.500 3.150 3.500 3.950 3.950 4.150
President's Choice Fin'l 3.000 6.040 3.240 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 4.000 3.140 3.140 3.950 4.740 5.340
Servus Credit Union - 4.000 3.140 3.140 3.750 4.540 5.340
Steinbach Credit Union - - 2.600 2.800 3.000 3.150 3.350
T-D Mortgage 3.000 4.000 3.090 3.140 3.650 4.540 5.340
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 4.190
Your Neighbourhood C.U. - - 3.400 3.500 3.600 3.690 3.590

Prepared by CANNEX on October 5, 2013 at 00:30:24 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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