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Greater Sudbury Real Estate Blog

Market updates, buying and selling guidance, Ontario real estate information and straight answers for people making real decisions in Greater Sudbury.

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April 13, 2022

Bank of Canada Raises to 1.00%: April 13, 2022

Bank of Canada Raises to 1.00%: April 13, 2022

The Bank of Canada raises to 1.00% on April 13, 2022. The 50-basis-point increase moves the announced target from 0.50%. A half-point increase is paired with a shrinking balance sheet. The new target takes effect on April 14, 2022.

The decision at a glance

Policy measure Announcement
Overnight target 1.00%
Change +50 basis points
Bank Rate 1.25%
Deposit rate 1.00%

A half-point increase is paired with a shrinking balance sheet

The Bank raises the target by 50 basis points and announces quantitative tightening from April 25. It will stop replacing maturing Government of Canada bonds, allowing its holdings to decline over time. That policy complements the rate increase by withdrawing some of the extraordinary financial support introduced during the pandemic.

Canada is moving into excess demand: spending is growing faster than the economy can comfortably supply goods and services. Labour markets are tight, businesses face capacity constraints and firms are passing higher costs through to prices. The Bank forecasts GDP growth of 4.25% in 2022, followed by 3.25% in 2023 and 2.25% in 2024. Housing activity is expected to moderate from unusually high levels.

Inflation is 5.7%, above the January forecast. War-related commodity shocks add to food, energy and supply pressures, while strong demand broadens inflation at home. The Bank now expects inflation to average almost 6% in the first half of 2022 and return to 2% only in 2024. It signals further increases, making payment resilience and renewal planning more important than trying to guess the final rate.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.70%
One-year conventional mortgage 3.09%
Three-year conventional mortgage 3.89%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, April 13, 2022. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
March 2, 2022

Bank of Canada Raises to 0.50%: March 2, 2022

Bank of Canada Raises to 0.50%: March 2, 2022

The Bank of Canada raises to 0.50% on March 2, 2022. The 25-basis-point increase moves the announced target from 0.25%. The first increase meets a new inflation shock. The new target takes effect on March 3, 2022.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change +25 basis points
Bank Rate 0.75%
Deposit rate 0.50%

The first increase meets a new inflation shock

The Bank raises its target by a quarter point as Canada emerges from Omicron with strong demand. Fourth-quarter GDP grows at an annualized 6.7% pace, above the Bank’s projection. Household spending is resilient and housing activity is exceptionally strong. Although January restrictions temporarily disrupt employment, the Bank sees the recovery regaining momentum.

Russia’s invasion of Ukraine adds a major new source of uncertainty. Higher oil and other commodity prices will lift inflation, while supply disruption and weaker confidence could reduce growth. The effects pull in different directions for Canada: some exporters benefit from higher commodity prices, while households face higher fuel and food costs.

Inflation is 5.1%, with price increases becoming more widespread and core measures rising. The Bank signals that further increases are likely and is considering when to begin shrinking its bond holdings. For a variable-rate borrower, the immediate question is how the lender adjusts prime and how the mortgage contract handles that change. For a fixed-rate borrower, the impact is usually through new offers or renewal rather than an automatic change to the existing rate.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, March 2, 2022. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
Jan. 26, 2022

Bank of Canada Holds at 0.25%: January 26, 2022

Bank of Canada Holds at 0.25%: January 26, 2022

The Bank of Canada holds at 0.25% on January 26, 2022. The low-rate commitment ends, even though the rate holds.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change No change
Bank Rate 0.50%
Deposit rate 0.25%

The low-rate commitment ends, even though the rate holds

The important change today is the removal of the Bank’s exceptional promise to keep the policy rate at its lower bound. It now judges that the economy’s overall unused capacity has been absorbed. Employment is strong, vacancies are elevated and wage gains are picking up. Housing activity continues to put upward pressure on prices.

Omicron is expected to interrupt the first quarter, but the Bank anticipates a subsequent rebound led by services spending, exports and investment. It forecasts Canadian growth of 4% in 2022 and about 3.5% in 2023. That outlook is strong enough for the Bank to say rates will need to increase, with the timing and pace determined by inflation and economic conditions.

Inflation is expected to remain near 5% in the first half of this year as supply constraints and higher food and energy costs spread across more goods. The Bank forecasts a decline toward 3% by year-end, but is concerned that near-term inflation expectations are rising. For borrowers, an unchanged rate today should not obscure the message: the conditions supporting emergency-low rates have changed.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, January 26, 2022. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
Jan. 5, 2022

Greater Sudbury Real Estate Market in 2021: What the Numbers Show

Greater Sudbury Real Estate Market in 2021: What the Numbers Show

The opening annual record in this series from 2021 contains 2,791 listing events and 2,486 sold-close events in Greater Sudbury, with a $360,050 median close price. Those measures show how the year moved, while property type and sale mix explain why the headline median needs context.

New listings2,791
Sold closes2,486
Median close price$360,050
Median paired ratio105.16%

The numbers and the questions they answer

Greater Sudbury annual market measures for 2021
Measure 2021 Change from No directly comparable prior period in this series
New-listing events 2,791 —
Sold-close events 2,486 —
Median close price $360,050 —
Median close-price-to-export-list relationship 105.16% The median ClosePrice-to-ListPrice relationship in 2,486 paired records.

Within the opening annual record in this series from 2021, new-listing events describe the flow of properties entering the dataset. Sold-close events describe transactions whose recorded closing falls in that period. They are not the same group of properties, so one count divided by the other is not a sales conversion rate.

The reading from the opening annual record in this series from 2021 stands on its own in this series. Its value comes from comparing listing flow, closing flow, the median price and the paired price relationship—not from forcing a comparison to a period built differently.

What the activity flow suggests

Within the opening annual record in this series from 2021, there is more listing flow than closing flow: the difference between 2,791 new-listing events and 2,486 sold-close events is 305. Another way to show the relationship is about 89.1 sold-close events for every 100 new-listing events recorded in the same period. That comparison is directional because a listing can close in a different month or quarter.

The practical point from the opening annual record in this series from 2021 is the combination of a 305-event gap and a 89.1-per-100 relationship—not a label for the whole city. The better question is whether a specific property segment is gaining fresh alternatives faster than qualified buyers are absorbing them. Price range, condition, neighbourhood and property type can produce a very different balance from the city-wide summary.

How to read the $360,050 median

In the opening annual record in this series from 2021, the median close price is the middle value among the valid positive close prices. It is less sensitive to one extreme sale than an average, but it can still move because a larger share of higher-priced or lower-priced homes happens to close.

The composition of the opening annual record in this series from 2021 is why the $360,050 result cannot be applied as a percentage adjustment to a specific Greater Sudbury property. A valuation needs recent comparable sales with similar location, lot, age, condition, size, utility, updates and market exposure. The median gives the conversation a scale; the comparable set gives it precision.

What the 105.16% paired relationship does—and does not—show

Across the opening annual record in this series from 2021, the median close-price-to-export-list relationship is 105.16%, which places the midpoint above the export list field. Here, competition is visible in the midpoint of the paired records. This measure uses the ListPrice field present in the export; it does not prove the property's original asking price or capture every price change made before the sale.

For a buyer using the opening annual record in this series from 2021, the ratio is not an automatic offer formula; for a seller, it is not a promise. The useful comparison is the group of current and recently sold homes that compete with the subject property, including the differences that explain why one attracts stronger terms than another.

What buyers can do with 2021's signal

Recalculate taxes, heating and insurance for each serious property. In the opening annual record in this series from 2021, the $360,050 market median is not the buyer's budget, and the 105.16% paired relationship is not the required bid. Financing, property tax, utilities, insurance, condo fees and immediate repairs all determine the real monthly cost.

  • Confirm the rate, term, amortization and expiry date of the pre-approval.
  • Compare each serious home with current alternatives and recent closes.
  • Estimate near-term repairs before deciding which property is the better value.
  • Use financing and inspection conditions according to the property's risks and the offer environment.
  • Keep closing costs and an emergency reserve outside the down payment.

The figures in the opening annual record in this series from 2021 are most useful as a prompt to investigate. If new choices are accumulating in the buyer's exact segment, there may be room to slow down and compare. If well-positioned homes are disappearing quickly, preparation and clean decision-making matter more than a city-wide label.

What sellers can do with 2021's signal

Separate presentation problems from a price problem during the first week. The gap inside the opening annual record in this series from 2021—2,791 listing events against 2,486 sold closes—creates 305 more listing events, but the decisive competition is still the small set visible to the same buyer.

  • Build the price range from comparable sales and active competition.
  • Account for condition, updates, deferred work and recurring carrying costs.
  • Make the online presentation answer the questions buyers use to eliminate options.
  • Track showing quality, repeat interest and objections from the opening days.
  • Adjust when the competing set and buyer response do not support the original position.

A strong sale within the opening annual record in this series from 2021 still requires alignment among price, property and exposure. The market summary can identify the environment; it cannot compensate for an asking price that qualified buyers cannot defend against the alternatives.

How these Greater Sudbury measures are calculated

For the opening annual record in this series from 2021, the counts come from nine geographically divided MLS exports used in this local series. Listing events use the recorded ListingContractDate. Sold-close events require a valid CloseDate and a positive ClosePrice. The median paired relationship uses ClosePrice and the export's ListPrice field.

The exports behind the opening annual record in this series from 2021 may not contain every board-wide or City of Greater Sudbury record. These are raw activity and price measures rather than a benchmark index, a same-home appreciation calculation or a forecast. That limitation is why property-level comparable work remains essential.

To compare the opening annual record in this series from 2021 with another public view of the region, see the Sudbury Real Estate Board statistics page from CREA.

The 2021 bottom line

The opening annual record in this series from 2021 provides a clear four-part snapshot: 2,791 listing events, 2,486 sold-close events, a $360,050 median close price and a 105.16% median paired relationship. Read together, they describe activity, price mix and negotiating outcomes without pretending that every home or neighbourhood moves the same way.

Bring the market down to one property

If you are buying or selling in Greater Sudbury while the opening annual record in this series from 2021 shapes the conversation, I can build the current comparison around the home, neighbourhood, condition, financing and timing that actually shape your decision.

Explore the buyer process Explore the seller process

Expect Moore for Your Real Estate.
— Chad Moore
Lake City Realty

Posted in Greater Sudbury Market Updates & Analysis
no comments yet
Dec. 8, 2021

Bank of Canada Holds at 0.25%: December 8, 2021

Bank of Canada Holds at 0.25%: December 8, 2021

The Bank of Canada holds at 0.25% on December 8, 2021. Omicron adds uncertainty to a stronger economy.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change No change
Bank Rate 0.50%
Deposit rate 0.25%

Omicron adds uncertainty to a stronger economy

Canada’s third-quarter GDP grows at an annualized pace of about 5.5%, led by a rebound in consumption, particularly services. Output remains roughly 1.5% below late-2019 levels after revisions to the earlier quarter. Employment gains are broadening, job vacancies are high and housing resales appear to be strengthening again. The economy enters the fourth quarter with considerable momentum.

Two new risks complicate that improvement. The Omicron variant prompts travel restrictions and renewed uncertainty, while severe flooding in British Columbia disrupts transport and supply chains. Existing shortages already restrain non-commodity exports and investment. A stronger domestic economy is therefore still exposed to interruptions that a low policy rate cannot resolve directly.

Inflation pressures spread across more goods as supply backlogs persist. Gasoline prices have recently fallen, but the Bank expects overall inflation to stay elevated through the first half of 2022 before easing. It maintains its reinvestment program and conditional low-rate guidance, with unused capacity projected to be absorbed in the middle quarters of 2022. Households approaching renewal should use today’s breathing room to compare options and test higher-payment scenarios.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, December 8, 2021. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
Oct. 27, 2021

Bank of Canada Holds at 0.25%: October 27, 2021

Bank of Canada Holds at 0.25%: October 27, 2021

The Bank of Canada holds at 0.25% on October 27, 2021. Bond buying ends as inflation looks more persistent.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change No change
Bank Rate 0.50%
Deposit rate 0.25%

Bond buying ends as inflation looks more persistent

The Bank ends quantitative easing and moves to reinvestment: it will replace maturing Government of Canada bonds rather than keep expanding its holdings. The policy rate stays at 0.25%. This is a meaningful withdrawal of additional support, but it is different from selling the existing bond portfolio or immediately increasing the overnight rate.

Canadian growth is forecast at 5% in 2021, 4.25% in 2022 and 3.75% in 2023. Consumption and employment recover, while manufacturing shortages, transportation bottlenecks and hiring difficulties limit how much the economy can produce. The Bank judges that the gap between demand and available capacity is probably smaller than it expected in July, even though some labour-market weakness remains.

Energy prices and supply disruptions are stronger and more persistent than expected. Inflation is now projected to remain elevated into next year before easing toward 2% by late 2022. The Bank brings its projected timing for absorbing unused capacity forward to the middle quarters of 2022. For borrowers, the direction of policy is changing, but the next rate decision still depends on incoming evidence.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, October 27, 2021. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
Sept. 8, 2021

Bank of Canada Holds at 0.25%: September 8, 2021

Bank of Canada Holds at 0.25%: September 8, 2021

The Bank of Canada holds at 0.25% on September 8, 2021. Weak exports interrupt growth despite stronger domestic spending.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change No change
Bank Rate 0.50%
Deposit rate 0.25%

Weak exports interrupt growth despite stronger domestic spending

Canada’s second-quarter GDP contracts at roughly a 1% annualized rate, below the Bank’s July expectation. Export weakness is central, including auto-sector supply disruptions. Housing also pulls back from unusually high activity. Yet consumption, business investment and government spending contribute positively, with domestic demand growing at an annualized pace above 3%. The headline contraction does not describe every part of the economy.

Employment improves through June and July as restrictions ease, including in harder-hit services. Considerable slack remains, particularly among lower-wage workers. The Bank still expects stronger activity in the second half, but the fourth wave and supply bottlenecks could slow progress. This mix supports continued patience rather than an immediate tightening of policy.

Inflation remains above 3%. The Bank continues to attribute much of the increase to gasoline, low year-earlier comparisons and supply disruptions, while watching whether those pressures persist. Wages rise moderately and medium-term inflation expectations remain stable. Weekly bond purchases stay at $2 billion, with the rate outlook still conditional on recovery and a sustained return to the inflation target.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, September 8, 2021. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
July 14, 2021

Bank of Canada Holds at 0.25%: July 14, 2021

Bank of Canada Holds at 0.25%: July 14, 2021

The Bank of Canada holds at 0.25% on July 14, 2021. Recovery advances, but supply bottlenecks lift prices.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change No change
Bank Rate 0.50%
Deposit rate 0.25%

Recovery advances, but supply bottlenecks lift prices

The Bank reduces weekly government bond purchases to $2 billion, reflecting greater confidence in recovery while leaving the policy rate unchanged. It expects Canadian growth of about 6% in 2021, slightly below April’s forecast, followed by 4.5% in 2022 and 3.25% in 2023. The third wave slows the spring, but reopening should support a stronger second half.

Consumer spending is expected to lead as households return to more normal activities. Housing should ease from historic highs, while stronger international demand supports exports and investment. Employment is recovering, although matching people to available jobs may take time. New virus variants remain a concern, especially where vaccination rates are low.

May inflation reaches 3.6%. Gasoline, shipping disruptions, semiconductor shortages and reopening pressures all contribute. The Bank expects inflation to remain above 3% through the second half of 2021 before easing toward 2% in 2022. It views the pressures as temporary but explicitly acknowledges uncertainty about their size and duration. Borrowers should not confuse that forecast with certainty about future rates or household living costs.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, July 14, 2021. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
June 9, 2021

Bank of Canada Holds at 0.25%: June 9, 2021

Bank of Canada Holds at 0.25%: June 9, 2021

The Bank of Canada holds at 0.25% on June 9, 2021. Reopening optimism meets a still-incomplete jobs recovery.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change No change
Bank Rate 0.50%
Deposit rate 0.25%

Reopening optimism meets a still-incomplete jobs recovery

First-quarter GDP grows at an annualized 5.6% pace, below the Bank’s forecast but with stronger household spending underneath the headline. Inventory reductions and higher imports explain part of the difference. Third-wave restrictions are slowing the second quarter, particularly in services requiring close contact, and employment remains well below its pre-pandemic rate.

Faster vaccination and easing provincial restrictions point toward a stronger summer. The Bank expects consumption to lead the rebound, with exports and business investment helped by foreign demand and commodity prices. Housing activity is expected to cool from its exceptional pace while remaining elevated. New variants remain a risk to the timing and breadth of recovery.

Inflation is near 3%, largely because of gasoline and comparisons with low prices a year earlier. The Bank expects those effects to ease later in the year. It keeps weekly bond purchases at $3 billion and retains guidance tied to a sustained return to 2% inflation, projected for the second half of 2022. For households, improving national prospects do not replace an assessment of their own income and borrowing resilience.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, June 9, 2021. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet
April 21, 2021

Bank of Canada Holds at 0.25%: April 21, 2021

Bank of Canada Holds at 0.25%: April 21, 2021

The Bank of Canada holds at 0.25% on April 21, 2021. A stronger forecast brings less new bond buying.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change No change
Bank Rate 0.50%
Deposit rate 0.25%

A stronger forecast brings less new bond buying

The Bank reduces weekly government bond purchases to a target of $3 billion, effective the week of April 26. It is still adding support, but at a slower pace as the recovery strengthens. The policy rate remains unchanged. This distinction matters for borrowers: reducing bond purchases is not itself a rate increase.

Canada’s growth forecast rises sharply to 6.5% for 2021, followed by roughly 3.75% in 2022 and 3.25% in 2023. Households and companies adapt better than expected to restrictions, while U.S. demand, commodity prices and government spending support the outlook. Housing construction and resales are at historic highs, driven by low mortgage rates, limited supply and demand for more space. The Bank is monitoring the risks from rapidly rising prices.

The third wave still threatens activity and employment. Inflation is expected to approach 3% temporarily, then ease as comparison effects fade. The Bank now expects unused capacity to be absorbed in the second half of 2022, earlier than its previous projection. That brings forward the possible conditions for a rate increase, but the timing remains tied to the recovery rather than a fixed calendar commitment.

What this means for a mortgage

The overnight target influences short-term borrowing costs, including lender prime rates. Variable mortgages and home-equity lines of credit are more directly exposed to prime-rate changes. Fixed mortgage offers also depend on bond yields, funding costs, the term and lender competition; they can move even when the Bank holds.

The Bank’s weekly lender series around this announcement provides the following posted reference rates. These are typical posted rates at six major chartered banks, not discounted offers or an assurance of the rate a borrower can obtain. They should not be read as proof that a lender has already passed through today’s decision.

Posted reference Rate
Prime 2.45%
One-year conventional mortgage 2.79%
Three-year conventional mortgage 3.49%
Five-year conventional mortgage 4.79%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.79% posted five-year rate is approximately $1,709 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

Ask for written figures using your balance, down payment and amortization. Compare payment mechanics, prepayment options, penalties and the cash left after closing. A variable mortgage with fixed payments may change how much principal you repay instead of changing the payment immediately; the contract determines the result.

Preparing to sell

Financing affects what buyers can carry, but it does not set one price for every home. Compare recent sales and active alternatives in the same neighbourhood and price range. Condition, carrying costs, presentation and offer terms remain central to the decision.

Official announcement: Bank of Canada, April 21, 2021. The national policy decision does not, by itself, establish a change in Greater Sudbury property values.

For a local plan, explore the Buyer Experience or Seller Experience. You can also browse the Bank of Canada Decisions & Mortgage Rate Context Archive.

Expect Moore for Your Real Estate.
— Chad Moore, REALTOR®
— Lake City Realty Ltd., Brokerage

Posted in Mortgage Rates & Home Financing
no comments yet

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