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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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New and recently refreshed guidance appears first.

March 10, 2021

Bank of Canada Holds at 0.25%: March 10, 2021

Bank of Canada Holds at 0.25%: March 10, 2021

The Bank of Canada holds at 0.25% on March 10, 2021. The economy proves more resilient to restrictions.

The decision at a glance

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

The economy proves more resilient to restrictions

The Bank now expects positive first-quarter growth rather than the contraction it forecast in January. Households and businesses are adapting to restrictions, housing activity is much stronger than expected and foreign demand is improving. Fourth-quarter GDP grows at a 9.6% annualized pace, although inventory accumulation accounts for much of that increase.

The recovery is still incomplete. Employment remains well below pre-pandemic levels, with low-wage workers, younger people and women carrying a disproportionate share of the losses. More transmissible variants create a serious risk of further disruption. Stronger U.S. growth and higher commodity prices help Canada’s outlook, but they do not remove the weakness in services that require close contact.

Inflation could temporarily approach 3% in the coming months as gasoline rises and comparisons with last year’s depressed prices change. Core measures range from 1.3% to 2%. The Bank holds the rate and continues at least $4 billion in weekly bond purchases because significant unused capacity remains. Rising bond yields can still affect fixed mortgage offers even while the overnight target stays unchanged.

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 10, 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
Jan. 20, 2021

Bank of Canada Holds at 0.25%: January 20, 2021

Bank of Canada Holds at 0.25%: January 20, 2021

The Bank of Canada holds at 0.25% on January 20, 2021. A difficult winter delays the recovery.

The decision at a glance

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

A difficult winter delays the recovery

New lockdowns interrupt Canada’s recovery, and the Bank now expects activity to contract in the first quarter. It anticipates a strong second-quarter rebound if restrictions ease later this winter. Vaccines arrive earlier than expected, improving the longer-term outlook, but the forecast remains dependent on the virus and the pace of vaccination.

The Bank projects Canadian growth of 4% in 2021, almost 5% in 2022 and about 2.5% in 2023, following an estimated 5.5% decline in 2020. Reopening should support consumption, while stronger foreign demand helps exports and investment. Higher commodity prices and a weaker U.S. dollar are also lifting the Canadian dollar, with different effects for exporters and consumers buying imported goods.

Inflation is near the bottom of the 1%–3% control range. Comparisons with last spring’s low prices could temporarily push it toward 2%, without eliminating unused economic capacity. The Bank continues at least $4 billion in weekly bond purchases and expects the conditions for a rate increase only in 2023 under its projection. That remains conditional guidance, not a guarantee for the duration of a mortgage.

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 20, 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
Dec. 9, 2020

Bank of Canada Holds at 0.25%: December 9, 2020

Bank of Canada Holds at 0.25%: December 9, 2020

The Bank of Canada holds at 0.25% on December 9, 2020. Vaccine progress improves the longer view, while restrictions return.

The decision at a glance

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

Vaccine progress improves the longer view, while restrictions return

News of effective vaccines offers a route back toward more normal activity, but the timing and reach of vaccination remain uncertain. New waves of infection are forcing renewed restrictions in Canada and abroad. The Bank expects those measures to weigh on early-2021 growth, even though the economy enters the fourth quarter with more momentum than it anticipated in October.

Canada’s third-quarter rebound matches the broad forecast, and employment continues to recover at a slower pace. Conditions differ sharply across industries and workers. Additional federal support should help maintain household and business income through the second wave. Higher commodity prices and a weaker U.S. dollar also contribute to a stronger Canadian dollar, affecting exporters and import costs differently.

October inflation rises to 0.7%, partly because fresh produce costs more, while core measures stay below 2%. The Bank continues at least $4 billion in weekly bond purchases and its conditional low-rate guidance. Its October projection does not see the conditions for a rate increase until 2023. Borrowers should read that as an economic outlook, not a contractual guarantee about their future mortgage payment.

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 3.09%
Three-year conventional mortgage 3.45%
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 9, 2020. 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. 28, 2020

Bank of Canada Holds at 0.25%: October 28, 2020

Bank of Canada Holds at 0.25%: October 28, 2020

The Bank of Canada holds at 0.25% on October 28, 2020. Bond purchases change shape as the recovery slows.

The decision at a glance

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

Bond purchases change shape as the recovery slows

The Bank reduces weekly government bond purchases to at least $4 billion while shifting toward longer-term bonds. It judges that the combined adjustment provides at least as much monetary support as before, because longer maturities more directly influence borrowing costs important to households and businesses. The smaller weekly total should therefore not be read on its own as a move toward higher rates.

Canada’s summer rebound is stronger than expected, but rising infections are likely to slow fourth-quarter growth. The effects are particularly hard on lower-income workers and sectors requiring close contact. The Bank forecasts a GDP decline of about 5.5% in 2020, followed by growth averaging almost 4% in 2021 and 2022. It also lowers its estimate of the economy’s future productive capacity.

September inflation is 0.5%, and core measures remain below 2%. The Bank expects the conditions for a policy-rate increase to arrive only in 2023 under its current projection. That timing is conditional, not a fixed expiry date for low rates. A household can consider the guidance when comparing mortgage options, while still checking renewal risk, penalties and the cost of changing plans.

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 3.09%
Three-year conventional mortgage 3.59%
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 28, 2020. 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. 9, 2020

Bank of Canada Holds at 0.25%: September 9, 2020

Bank of Canada Holds at 0.25%: September 9, 2020

The Bank of Canada holds at 0.25% on September 9, 2020. A faster reopening still leaves a large gap.

The decision at a glance

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

A faster reopening still leaves a large gap

Canadian GDP falls 11.5% in the second quarter, equivalent to a 39% annualized decline. Those figures describe the same quarter using different conventions; they are not two separate losses. The third-quarter rebound now looks stronger than the Bank expected in July. Goods purchases and housing activity recover sharply, helped by delayed demand, income replacement programs and lower borrowing costs.

The recovery remains uneven. Employment rebounds but not equally across sectors, exports remain well below pre-pandemic levels and business investment is subdued. The Bank expects the initial reopening surge to give way to a slower, less predictable recovery. A busy housing market can therefore coexist with serious weakness elsewhere in the economy.

Inflation is near zero, while core measures range from 1.3% to 1.9%, reflecting substantial unused capacity. The Bank keeps its conditional low-rate guidance and at least $5 billion in weekly government bond purchases. For Greater Sudbury buyers, improved financing does not remove the need to inspect carefully, confirm income stability and avoid treating a summer burst of demand as a permanent market condition.

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 3.09%
Three-year conventional mortgage 3.59%
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 9, 2020. 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 15, 2020

Bank of Canada Holds at 0.25%: July 15, 2020

Bank of Canada Holds at 0.25%: July 15, 2020

The Bank of Canada holds at 0.25% on July 15, 2020. Reopening brings a rebound, not a complete 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 brings a rebound, not a complete recovery

The Bank’s central scenario puts Canadian activity in the second quarter about 15% below late-2019 levels. It expects roughly 40% of the first-half collapse to be recovered in the third quarter as businesses reopen and delayed spending returns. After that initial bounce, recovery is expected to slow. The scenario depends on assumptions including no widespread second wave of the virus, so it is not a firm forecast.

Under that scenario, GDP falls 7.8% in 2020, then grows 5.1% in 2021 and 3.7% in 2022. Demand is expected to recover more slowly than the economy’s capacity to supply goods and services. Inflation is close to zero, with core measures between 1.4% and 1.9%. Weak travel prices and gasoline help explain the headline reading.

The Bank gives explicit guidance: the policy rate is to stay at its lower bound until unused capacity is absorbed and 2% inflation can be sustained. At least $5 billion in weekly government bond purchases reinforces that support. This gives borrowers a clearer policy framework, but the commitment depends on economic conditions; it is not a guaranteed mortgage rate or a promise covering an individual loan’s full term.

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 3.09%
Three-year conventional mortgage 3.79%
Five-year conventional mortgage 4.94%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.94% posted five-year rate is approximately $1,735 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 15, 2020. 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 3, 2020

Bank of Canada Holds at 0.25%: June 3, 2020

Bank of Canada Holds at 0.25%: June 3, 2020

The Bank of Canada holds at 0.25% on June 3, 2020. The worst-case scenario looks less likely.

The decision at a glance

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

The worst-case scenario looks less likely

Canada has suffered historic losses in jobs and production, but the Bank now believes the economy is avoiding its most severe April scenario. First-quarter GDP is 2.1% below the previous quarter. A further decline of 10% to 20% is expected in the second quarter, followed by a return to growth in the third. These are changes in economic output, not forecasts for local home values.

Financial conditions improve as government income support and central-bank measures cushion the shutdown. Some emergency funding operations can now run less frequently because short-term markets are working better. Purchases of federal, provincial and corporate debt continue, however. Scaling back an emergency operation is not the same as removing the broader support for recovery.

Headline inflation is near zero, mainly because gasoline is cheaper; core measures range from 1.6% to 2%. The Bank expects an uneven recovery that depends on the lifting of restrictions. Tiff Macklem takes office as Governor today and endorses the decision. For households, the low-rate environment still needs to be paired with realistic income assumptions and a cash reserve for disruption.

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 3.19%
Three-year conventional mortgage 3.89%
Five-year conventional mortgage 4.94%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.94% posted five-year rate is approximately $1,735 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 3, 2020. 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 15, 2020

Bank of Canada Holds at 0.25%: April 15, 2020

Bank of Canada Holds at 0.25%: April 15, 2020

The Bank of Canada holds at 0.25% on April 15, 2020. A historic shutdown makes a normal forecast unreliable.

The decision at a glance

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

A historic shutdown makes a normal forecast unreliable

More than one million Canadian jobs disappear in March, and roughly six million people have applied for the Canada Emergency Response Benefit by early April. Shutdowns and the fall in oil prices are hitting both activity and household income. The Bank says uncertainty is too great for a complete forecast. Its scenarios put second-quarter activity 15% to 30% below the level of late 2019—not an annualized growth rate or a prediction of house-price declines.

The rate stays at its lower bound, while support shifts toward financial markets. The Bank continues at least $5 billion in weekly federal bond purchases and announces provincial and corporate bond programs of up to $50 billion and $10 billion respectively. It also expands access to longer-term funding. The aim is to keep credit channels working as governments, businesses and households seek financing.

Inflation is expected to be near zero in the second quarter, largely because gasoline is cheaper. That does not mean every household expense is falling. For a buyer or owner, the priority is liquidity: understand income support, lender arrangements, essential carrying costs and closing obligations. The Bank expects an uneven recovery, with its pace depending heavily on the course of the health crisis.

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 3.29%
Three-year conventional mortgage 3.94%
Five-year conventional mortgage 5.04%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.04% posted five-year rate is approximately $1,752 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 15, 2020. 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 27, 2020

Bank of Canada Cuts to 0.25%: March 27, 2020

Bank of Canada Cuts to 0.25%: March 27, 2020

The Bank of Canada cuts to 0.25% on March 27, 2020. The 50-basis-point reduction moves the announced target from 0.75%. The rate reaches its lower bound as credit support expands.

The decision at a glance

Policy measure Announcement
Overnight target 0.25%
Change -50 basis points
Bank Rate 0.50%
Deposit rate 0.25%

The rate reaches its lower bound as credit support expands

The Bank makes another unscheduled half-point cut, bringing its target to 0.25%, which it considers the effective lower bound. The pandemic and the abrupt fall in oil prices are causing a severe contraction. The immediate purpose is to cushion borrowing costs and keep credit available while public-health restrictions interrupt normal activity.

Today’s announcement goes well beyond the rate. A new commercial-paper purchase program will support an important source of short-term business funding. The Bank will also buy at least $5 billion of Government of Canada securities each week in secondary markets. Those purchases are intended to reduce market strain and improve the effectiveness of its other measures; they are to continue until recovery is well underway.

Earlier actions already include expanded lending facilities and purchases in mortgage, bank funding and provincial money markets. These measures complement government support for households and businesses. For consumers, the distinction is practical: emergency financial-system support is designed to preserve access to credit, but an individual mortgage still depends on lender terms, income, property value and the borrower’s ability to complete the purchase.

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 2.95%
One-year conventional mortgage 3.29%
Three-year conventional mortgage 3.94%
Five-year conventional mortgage 5.04%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.04% posted five-year rate is approximately $1,752 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 27, 2020. 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 13, 2020

Bank of Canada Cuts to 0.75%: March 13, 2020

Bank of Canada Cuts to 0.75%: March 13, 2020

The Bank of Canada cuts to 0.75% on March 13, 2020. The 50-basis-point reduction moves the announced target from 1.25%. An emergency cut addresses two shocks at once. The new target takes effect on March 16, 2020.

The decision at a glance

Policy measure Announcement
Overnight target 0.75%
Change -50 basis points
Bank Rate 1.00%
Deposit rate 0.50%

An emergency cut addresses two shocks at once

This is an unscheduled announcement, only nine days after the March 4 reduction. The new 0.75% target takes effect on Monday, March 16. The Bank is responding to the accelerating COVID-19 pandemic and a further sharp decline in oil prices. Together, those shocks threaten household income, business activity and investment, with especially difficult conditions for energy-dependent regions.

The short statement does not offer a new GDP or inflation forecast. A fuller outlook is planned for April 15, and the Bank leaves the door open to more policy action. That restraint matters: the size of today’s cut shows urgency, but it does not establish how long disruptions will last or how quickly the economy can recover.

The Bank is also adding liquidity to support the financial system, helping institutions obtain funding and keep credit moving. A lower overnight target does not eliminate lender approval requirements or protect a borrower from lost income. If a purchase is underway, confirm the lender’s funding conditions and your remaining financing deadlines before assuming the announcement makes the transaction easier.

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 3.45%
One-year conventional mortgage 3.39%
Three-year conventional mortgage 3.94%
Five-year conventional mortgage 5.19%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.19% posted five-year rate is approximately $1,777 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 13, 2020. 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
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