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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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March 4, 2020

Bank of Canada Cuts to 1.25%: March 4, 2020

Bank of Canada Cuts to 1.25%: March 4, 2020

The Bank of Canada cuts to 1.25% on March 4, 2020. The 50-basis-point reduction moves the announced target from 1.75%. COVID-19 changes the outlook.

The decision at a glance

Policy measure Announcement
Overnight target 1.25%
Change -50 basis points
Bank Rate 1.50%
Deposit rate 1.00%

COVID-19 changes the outlook

The coronavirus outbreak is the decisive new risk. Activity falls sharply in affected regions, supply chains are disrupted and commodity prices decline. Financial markets are repricing risk, while the Canadian dollar weakens. The Bank expects the spread of the virus to damage business and consumer confidence, adding a demand shock to the immediate interruptions in production.

Canada enters this period with inflation close to target, but not with strong momentum. Fourth-quarter growth is an annualized 0.3%. Household spending performs better than expected, while exports and business investment weaken. Rail blockades, Ontario teacher strikes and winter storms add to the first-quarter drag. Lower commodity prices could further reduce Canadian income if they persist.

The half-point cut responds to the deteriorating outlook rather than a collapse already visible in every economic indicator. The Bank says it is prepared to act again and will ensure the financial system has sufficient liquidity. For a household considering a move, the financing benefit needs to be weighed alongside employment stability, cash reserves and the rapidly changing health situation.

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 3.95%
One-year conventional mortgage 3.64%
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 4, 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
Jan. 22, 2020

Bank of Canada Holds at 1.75%: January 22, 2020

Bank of Canada Holds at 1.75%: January 22, 2020

The Bank of Canada holds at 1.75% on January 22, 2020. The Bank is testing whether the slowdown will last.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

The Bank is testing whether the slowdown will last

Canada’s late-2019 weakness is larger than the Bank expected in October. It estimates fourth-quarter growth at an annualized 0.3%, followed by 1.3% in the first quarter of 2020. Exports fall, business investment appears softer and job creation slows. Consumer confidence and spending are also weaker than expected, although residential investment remains comparatively solid.

Strikes, difficult weather and inventory adjustments explain some of the slowdown. The harder question is whether weaker global conditions are affecting Canada more deeply. Households are saving a larger share of income, which can restrain spending while also reducing financial vulnerability. The Bank forecasts Canadian growth of 1.6% this year and 2% in 2021, supported by population growth, incomes and improving foreign demand.

Inflation remains around 2%, and wages continue to strengthen despite the recent loss of momentum. The Bank therefore holds while watching consumption, housing and investment closely. The decision is a balance between near-target inflation and a widening gap between actual activity and what the economy could produce—not a guarantee that mortgage rates will remain unchanged all year.

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 3.95%
One-year conventional mortgage 3.64%
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, January 22, 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
Dec. 4, 2019

Bank of Canada Holds at 1.75%: December 4, 2019

Bank of Canada Holds at 1.75%: December 4, 2019

The Bank of Canada holds at 1.75% on December 4, 2019. A steady Canadian economy faces an unsettled world.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

A steady Canadian economy faces an unsettled world

Canada grows at an annualized 1.3% in the third quarter, broadly matching the Bank’s forecast. Consumer spending increases moderately, supported by stronger wages. Housing investment continues to improve as population growth and lower mortgage rates support demand. Non-energy exports weaken, however, leaving the economy dependent on several different sources of growth rather than one broad surge.

Business investment is a positive surprise, particularly in transportation equipment and engineering projects. The Bank wants to establish whether that strength can continue. Globally, there are tentative signs of stabilization and earlier central-bank actions have reduced recession concerns, but unresolved trade disputes remain the main risk. Improved financial-market confidence does not settle the outlook for production or investment.

Headline and core inflation are near 2%, consistent with an economy operating close to capacity. Gasoline comparisons may temporarily lift inflation in the coming months. The Bank keeps policy steady while balancing domestic resilience against trade uncertainty. A mortgage decision should therefore be based on available terms and a sustainable payment, not an assumption that the next announcement must deliver a cut.

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 3.95%
One-year conventional mortgage 3.64%
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, December 4, 2019. 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. 30, 2019

Bank of Canada Holds at 1.75%: October 30, 2019

Bank of Canada Holds at 1.75%: October 30, 2019

The Bank of Canada holds at 1.75% on October 30, 2019. Domestic resilience is being tested.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

Domestic resilience is being tested

The Bank expects Canadian growth to slow below its longer-run sustainable pace in the second half of 2019. Trade uncertainty, energy-sector challenges and the fading of temporary second-quarter gains are restraining activity. Its forecast calls for growth of 1.5% this year, 1.7% in 2020 and 1.8% in 2021. Business investment and exports are expected to contract before recovering.

Household activity is more resilient. Employment and wages support spending, government measures add demand and housing is strengthening in most markets. That contrast is central to the decision: weakness is visible in trade-sensitive sectors, but it has not yet spread decisively into the broader consumer economy. The Bank is watching for that spillover.

Inflation is close to 2%. A temporary gasoline-related dip is expected in 2020, with a modest amount of unused capacity gradually absorbed afterward. Holding the rate lets the Bank weigh external risks against domestic spending and household debt. For a buyer or seller, a national slowdown is a reason to test the plan carefully, not to assume the same price adjustment in every local market.

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 3.95%
One-year conventional mortgage 3.64%
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, October 30, 2019. 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. 4, 2019

Bank of Canada Holds at 1.75%: September 4, 2019

Bank of Canada Holds at 1.75%: September 4, 2019

The Bank of Canada holds at 1.75% on September 4, 2019. Strong spring growth comes with important qualifications.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

Strong spring growth comes with important qualifications

Canada’s second-quarter rebound is stronger than expected, but the Bank attributes part of it to temporary gains in oil production and exports. Housing is recovering faster than anticipated as mortgage rates fall. Wages are rising, yet consumption is relatively soft, and business investment drops sharply after a strong first quarter. The Bank still expects slower activity in the second half of the year.

Abroad, the trade conflict is reducing trade and investment. U.S. consumer and government spending offer some support, but commodity prices weaken and bond yields fall to unusually low levels. Canada’s yield curve is inverted, meaning some longer-term government borrowing rates sit below shorter-term rates—a sign of cautious market expectations, not a guaranteed recession forecast.

Inflation is at 2%, and the core measures are also near target. Temporary increases in airfares, telephone services and some food prices offset cheaper gasoline in July. The Bank judges the economy to be close to capacity, while acknowledging that trade tensions are taking a toll. Borrowers should distinguish today’s policy hold from the separate decline in some longer-term financing 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 3.95%
One-year conventional mortgage 3.64%
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, September 4, 2019. 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 10, 2019

Bank of Canada Holds at 1.75%: July 10, 2019

Bank of Canada Holds at 1.75%: July 10, 2019

The Bank of Canada holds at 1.75% on July 10, 2019. A stronger quarter does not settle the outlook.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

A stronger quarter does not settle the outlook

Canada’s second quarter looks stronger than the Bank expected, helped by increased oil production and the reversal of earlier weather-related weakness. Employment supports consumption, and lower longer-term mortgage rates are helping housing stabilize. The Bank raises its 2019 growth forecast slightly to 1.3%, with growth of about 2% expected in 2020 and 2021.

The improvement is not entirely durable. Some export strength is a rebound from temporary disruptions, while the U.S.–China trade conflict is weighing on global manufacturing and investment. The Bank expects world growth of 3% this year, followed by roughly 3.25% in the next two years. Further trade escalation remains the largest risk to that outlook.

Inflation is around 2%, including the core measures. Gasoline prices could temporarily pull it lower before it returns to target around the middle of 2020. The Bank holds because Canada is returning toward its productive capacity, but uncertainty remains substantial. Lower fixed mortgage offers can coexist with an unchanged policy rate because bond markets price that uncertainty separately.

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 3.95%
One-year conventional mortgage 3.64%
Three-year conventional mortgage 4.29%
Five-year conventional mortgage 5.34%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.34% posted five-year rate is approximately $1,803 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 10, 2019. 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
May 29, 2019

Bank of Canada Holds at 1.75%: May 29, 2019

Bank of Canada Holds at 1.75%: May 29, 2019

The Bank of Canada holds at 1.75% on May 29, 2019. Early signs of recovery meet fresh trade risks.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

Early signs of recovery meet fresh trade risks

The Bank sees evidence that growth is picking up in the second quarter. Oil production is recovering, housing is showing signs of stabilization and strong employment is supporting household income. Consumption, exports and investment are also improving. One caution is inventories: a sharp first-quarter build-up could mean less production is needed in the months ahead.

Trade developments pull in opposite directions. The removal of Canadian and U.S. steel and aluminum tariffs improves the prospects for ratifying the new North American agreement. At the same time, escalating international trade disputes and restrictions on some Canadian exports to China create new obstacles. A recovery in domestic activity does not remove those external risks.

Inflation and the core measures are near 2%, giving the Bank little reason to rush a change while it tests whether the rebound will last. For buyers, stabilizing national housing activity is context, not evidence that every Greater Sudbury listing faces stronger competition. The useful next step is to compare a lender’s current terms with the actual homes and recent sales in the neighbourhood you are considering.

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 3.95%
One-year conventional mortgage 3.64%
Three-year conventional mortgage 4.29%
Five-year conventional mortgage 5.34%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.34% posted five-year rate is approximately $1,803 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, May 29, 2019. 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 24, 2019

Bank of Canada Holds at 1.75%: April 24, 2019

Bank of Canada Holds at 1.75%: April 24, 2019

The Bank of Canada holds at 1.75% on April 24, 2019. A weaker first half calls for patience.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

A weaker first half calls for patience

The Bank cuts its 2019 growth forecast to 1.2%. Reduced oil production, weaker non-energy exports and soft household spending are weighing on the opening months of the year. Trade uncertainty is also holding back global investment. The forecast is not for continued stagnation: the Bank expects Canadian growth to return to about 2% in both 2020 and 2021.

Several supports could help activity improve in the second quarter. Strong population growth and easier financing should help housing stabilize as earlier policy changes work through the market. Employment and income gains support consumption, while capacity constraints could encourage business investment. Ontario’s budget moves in the other direction by reducing the expected contribution from government spending.

Headline and core inflation are close to 2%. The Bank expects a temporary dip later in the year as gasoline effects shift, rather than a lasting collapse in price pressure. With unused economic capacity likely to increase before growth recovers, the statement emphasizes the need for continued monetary support. There is no preset timetable for the next rate move.

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 3.95%
One-year conventional mortgage 3.64%
Three-year conventional mortgage 4.29%
Five-year conventional mortgage 5.34%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.34% posted five-year rate is approximately $1,803 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 24, 2019. 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 6, 2019

Bank of Canada Holds at 1.75%: March 6, 2019

Bank of Canada Holds at 1.75%: March 6, 2019

The Bank of Canada holds at 1.75% on March 6, 2019. The slowdown is broader than expected.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

The slowdown is broader than expected

Canada’s fourth-quarter slowdown reaches beyond the energy sector. Consumer spending, housing, exports and business investment all disappoint, even though employment and labour income remain supportive. The economy grows 1.8% in 2018, and the Bank now expects the first half of 2019 to be weaker than it projected in January.

The international backdrop also deteriorates. Trade uncertainty and fading temporary support are slowing activity across more countries. Other central banks are responding cautiously, which helps financial conditions, but easier markets are not the same thing as a recovery in actual spending. The Bank wants to understand how much of Canada’s weakness will persist.

January inflation is 1.4%, with lower gasoline prices pulling down the headline number; core measures remain near 2%. That gives the Bank room to keep supporting demand. Its statement is less certain about the timing of future increases. A Greater Sudbury household can use the pause to review financing, but should still leave room for a different rate at renewal.

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 3.95%
One-year conventional mortgage 3.64%
Three-year conventional mortgage 4.29%
Five-year conventional mortgage 5.34%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.34% posted five-year rate is approximately $1,803 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 6, 2019. 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. 9, 2019

Bank of Canada Holds at 1.75%: January 9, 2019

Bank of Canada Holds at 1.75%: January 9, 2019

The Bank of Canada holds at 1.75% on January 9, 2019. The oil shock changes the growth outlook.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change No change
Bank Rate 2.00%
Deposit rate 1.50%

The oil shock changes the growth outlook

The sharp fall in oil prices is the main change since October. Prices are about 25% below the Bank’s earlier assumption, reducing Canadian income and energy investment. Alberta’s production limits help narrow the discount on Canadian oil, but they also restrain output. The Bank now forecasts 1.7% growth in 2019, down 0.4 percentage points from its previous projection, before a recovery to 2.1% in 2020.

Outside energy, the picture is healthier. Employment is strong and unemployment is near a 40-year low. A lower Canadian dollar, the new North American trade agreement and business tax measures should support exports and investment. Housing and consumption are nevertheless weaker than expected as households adjust to mortgage rules, housing policies and higher borrowing costs.

November inflation is 1.7%, partly because gasoline is cheaper, while the Bank’s core measures remain near 2%. The Bank still expects rates to rise over time, but the oil shock creates room to wait. For borrowers, that is a conditional pause: today’s hold should not be treated as a promise that financing costs have reached their peak.

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 3.95%
One-year conventional mortgage 3.64%
Three-year conventional mortgage 4.29%
Five-year conventional mortgage 5.34%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.34% posted five-year rate is approximately $1,803 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 9, 2019. 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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