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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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Dec. 5, 2018

Bank of Canada Holds at 1.75%: December 5, 2018

Bank of Canada Holds at 1.75%: December 5, 2018

The Bank of Canada holds at 1.75% on December 5, 2018. A fresh oil-price shock interrupts the tightening 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 fresh oil-price shock interrupts the tightening outlook

Oil prices have fallen sharply since October, and western Canadian prices face additional pressure from transportation limits and excess inventories. With production being cut, the Bank expects materially weaker energy activity than previously forecast. Growth was on track in the third quarter, but momentum appears softer heading into the fourth.

Business investment fell during the third quarter amid trade uncertainty. The Bank expects non-energy investment to improve with the trade agreement, federal tax measures and capacity pressures, but the speed of that recovery remains important. Household credit and housing markets appear to be stabilizing after a significant slowdown.

Core inflation is tracking 2%, and lower gasoline prices should push headline inflation down faster than expected. GDP revisions and recent developments also suggest more room for growth without inflation. The Bank holds at 1.75% while retaining its view that rates will eventually need to rise. For households, that conditional outlook is different from a fixed timetable: compare renewal options without assuming either imminent hikes or guaranteed cuts.

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, December 5, 2018. 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. 24, 2018

Bank of Canada Raises to 1.75%: October 24, 2018

Bank of Canada Raises to 1.75%: October 24, 2018

The Bank of Canada raises to 1.75% on October 24, 2018. The 25-basis-point increase moves the announced target from 1.50%. Reduced North American trade uncertainty supports another increase.

The decision at a glance

Policy measure Announcement
Overnight target 1.75%
Change +25 basis points
Bank Rate 2.00%
Deposit rate 1.50%

Reduced North American trade uncertainty supports another increase

The new US-Mexico-Canada Agreement reduces an important source of uncertainty for business investment. Together with the recently approved LNG project in British Columbia, it leads the Bank to raise its investment and export projections. The Bank expects 2.1% growth in both 2018 and 2019, with the economy close to capacity.

There are limits to the improvement. Lower commodity prices, transportation constraints and competitiveness challenges still weigh on investment and exports. The Bank will watch whether the agreement produces actual spending and confidence, rather than assume the announcement immediately changes business activity.

September CPI is 2.2% after the summer airfare spike reversed, and core measures are around target. Housing and credit are adjusting to higher rates, with borrowing vulnerabilities easing in some respects but remaining elevated. The Bank raises the target to 1.75% and says it needs to move toward a neutral setting. The pace still depends on trade developments and how indebted households respond; mortgage planning should allow for that uncertainty.

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 3.70%
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, October 24, 2018. 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. 5, 2018

Bank of Canada Holds at 1.50%: September 5, 2018

Bank of Canada Holds at 1.50%: September 5, 2018

The Bank of Canada holds at 1.50% on September 5, 2018. A 3% inflation reading is not the whole decision.

The decision at a glance

Policy measure Announcement
Overnight target 1.50%
Change No change
Bank Rate 1.75%
Deposit rate 1.25%

A 3% inflation reading is not the whole decision

July CPI reached 3%, higher than expected, partly because of an unusual rise in airfares. Core inflation remains near 2%, and the Bank expects the headline measure to move back toward target as temporary effects, including earlier gasoline increases, fade. It holds rather than respond mechanically to the latest headline.

Canadian GDP grows at an annualized 2.9% pace in the second quarter after 1.4% in the first, closely matching the Bank's outlook. Business investment and exports continue to expand despite choppy data and trade uncertainty. Housing is stabilizing, credit growth is moderating and the household debt-to-income ratio is beginning to decline.

The Bank still expects higher rates to be needed and is watching NAFTA negotiations and the effect of previous increases. That is a cautious policy outlook, not a promise of unchanged mortgage costs. For buyers and owners approaching renewal, the useful preparation is to compare current terms and payment scenarios while keeping a margin for non-mortgage housing expenses.

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 3.70%
One-year conventional mortgage 3.49%
Three-year conventional mortgage 4.30%
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, September 5, 2018. 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 11, 2018

Bank of Canada Raises to 1.50%: July 11, 2018

Bank of Canada Raises to 1.50%: July 11, 2018

The Bank of Canada raises to 1.50% on July 11, 2018. The 25-basis-point increase moves the announced target from 1.25%. The Bank raises rates while accounting for new tariffs.

The decision at a glance

Policy measure Announcement
Overnight target 1.50%
Change +25 basis points
Bank Rate 1.75%
Deposit rate 1.25%

The Bank raises rates while accounting for new tariffs

The economy is operating close to capacity, and the Bank expects growth near 2% on average through 2020. Higher rates and tighter lending guidelines are slowing household spending, while exports and business investment take a larger role. Housing is beginning to stabilize after a weak start to the year.

Trade protectionism is the main global threat. The forecast includes the new US steel and aluminium tariffs and Canada's countermeasures, as well as a larger allowance for uncertainty affecting investment. The Bank expects a modest aggregate effect from the announced measures, while recognizing that particular industries and workers face difficult adjustments.

Inflation and core measures are near 2%; headline CPI is expected to rise temporarily to about 2.5%. The Bank raises the target to 1.50% while keeping future adjustments gradual and data-dependent. For households, the national average cannot describe exposure to a particular trade-sensitive employer. Consider both payment changes and income stability before using the maximum amount a lender will advance.

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 3.70%
One-year conventional mortgage 3.49%
Three-year conventional mortgage 4.30%
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 11, 2018. 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 30, 2018

Bank of Canada Holds at 1.25%: May 30, 2018

Bank of Canada Holds at 1.25%: May 30, 2018

The Bank of Canada holds at 1.25% on May 30, 2018. The case for higher rates strengthens without a move today.

The decision at a glance

Policy measure Announcement
Overnight target 1.25%
Change No change
Bank Rate 1.50%
Deposit rate 1.00%

The case for higher rates strengthens without a move today

The Bank says developments since April reinforce the need for higher rates over time. First-quarter activity looks slightly stronger than forecast, goods exports have improved, and machinery and equipment imports suggest investment is recovering. The economy remains broadly on course for an annualized growth pace of around 2% in the first half.

Housing resale activity is still soft as buyers adjust to new mortgage guidelines and higher borrowing costs. Labour-income growth should support consumption and eventually housing, but the adjustment is not finished. A weak housing reading and improving overall activity can therefore coexist.

Core inflation remains around 2%. Gasoline prices may temporarily push headline inflation above the Bank's earlier expectation, while trade-policy uncertainty continues to restrain investment. The Bank holds and reiterates a gradual approach. A borrower should use this period to understand payment sensitivity and rate-hold terms, rather than interpret the unchanged target as assurance that the cost of borrowing will stay fixed.

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 3.49%
Three-year conventional mortgage 4.30%
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 30, 2018. 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 18, 2018

Bank of Canada Holds at 1.25%: April 18, 2018

Bank of Canada Holds at 1.25%: April 18, 2018

The Bank of Canada holds at 1.25% on April 18, 2018. A weak opening quarter does not overturn the expansion.

The decision at a glance

Policy measure Announcement
Overnight target 1.25%
Change No change
Bank Rate 1.50%
Deposit rate 1.00%

A weak opening quarter does not overturn the expansion

The Bank expects a second-quarter rebound after weaker-than-forecast growth early in 2018. Housing activity partly reflects transactions moved into late 2017 ahead of mortgage changes, while transportation bottlenecks have restrained exports. Some of that weakness should unwind, but the Bank does not expect exports to recover all their recent lost ground.

Inflation and wages are showing progress. Core measures are near 2%, and wages are rising even after allowing for provincial minimum-wage increases. Business investment is adding capacity, which gives the economy more room to expand. The Bank projects growth of about 2% in both 2018 and 2019.

Trade uncertainty and competitiveness challenges still restrain exports and investment. The Bank holds while maintaining that higher rates will likely be needed, with the pace guided by capacity and sensitivity to borrowing costs. For a seller, a softer national resale period does not establish the correct price for a Sudbury home. Compare the relevant local alternatives and the financing pressures facing their likely buyers.

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 3.34%
Three-year conventional mortgage 4.15%
Five-year conventional mortgage 5.14%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.14% posted five-year rate is approximately $1,769 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 18, 2018. 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 7, 2018

Bank of Canada Holds at 1.25%: March 7, 2018

Bank of Canada Holds at 1.25%: March 7, 2018

The Bank of Canada holds at 1.25% on March 7, 2018. Housing demand is adjusting to new mortgage rules.

The decision at a glance

Policy measure Announcement
Overnight target 1.25%
Change No change
Bank Rate 1.50%
Deposit rate 1.00%

Housing demand is adjusting to new mortgage rules

Late-2017 housing strength followed by softer activity early this year suggests some buyers moved purchases forward ahead of new mortgage guidelines. The Bank needs more time to assess the lasting effect of those rules, provincial measures and higher interest rates. Household credit growth has slowed for three consecutive months.

Fourth-quarter growth was weaker than expected, but part of the reason was higher imports associated with business investment. That investment can increase future productive capacity, so a softer GDP headline is not the whole story. Exports recovered only partly from their earlier decline, and trade-policy uncertainty is becoming more important.

Inflation and core measures are near 2%, while wage growth remains modest for an economy near capacity. The Bank holds at 1.25% and continues to anticipate higher rates over time, cautiously. For a household planning to buy, changes in qualification can matter even without a rate move. Reconfirm the approval against the actual property and financing terms before relying on an earlier budget.

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 3.34%
Three-year conventional mortgage 4.15%
Five-year conventional mortgage 5.14%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.14% posted five-year rate is approximately $1,769 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 7, 2018. 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. 17, 2018

Bank of Canada Raises to 1.25%: January 17, 2018

Bank of Canada Raises to 1.25%: January 17, 2018

The Bank of Canada raises to 1.25% on January 17, 2018. The 25-basis-point increase moves the announced target from 1.00%. Strong demand meets a more uncertain trade outlook.

The decision at a glance

Policy measure Announcement
Overnight target 1.25%
Change +25 basis points
Bank Rate 1.50%
Deposit rate 1.00%

Strong demand meets a more uncertain trade outlook

The rate increase follows a year of roughly 3% growth and stronger-than-expected household spending and residential investment. Labour-market slack is being absorbed faster than anticipated, and inflation is close to 2%. The Bank expects growth to moderate to 2.2% in 2018 while remaining consistent with an economy near capacity.

The next stage depends more on investment and exports. Higher rates and new mortgage guidelines are expected to slow consumption and housing, while stronger US demand provides some support. However, uncertainty around NAFTA is increasingly weighing on Canadian trade and investment plans. The Bank includes a negative allowance for that uncertainty in its forecast.

The Bank expects additional increases over time but says some monetary support is still likely to be needed. It will watch wages, capacity and sensitivity to higher rates. For buyers, qualification rules and the actual mortgage offer need checking together: a favourable rate is of limited help if the financing conditions, down payment or purchase price do not fit.

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 3.20%
One-year conventional mortgage 3.34%
Three-year conventional mortgage 4.15%
Five-year conventional mortgage 5.14%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 5.14% posted five-year rate is approximately $1,769 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 17, 2018. 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. 6, 2017

Bank of Canada Holds at 1.00%: December 6, 2017

Bank of Canada Holds at 1.00%: December 6, 2017

The Bank of Canada holds at 1.00% on December 6, 2017. Employment improves while the Bank watches the response to higher rates.

The decision at a glance

Policy measure Announcement
Overnight target 1.00%
Change No change
Bank Rate 1.25%
Deposit rate 0.75%

Employment improves while the Bank watches the response to higher rates

Strong employment and improving wages support household spending, while business investment and public infrastructure spending contribute to growth. Exports fell more than expected in the third quarter after exceptional strength earlier in the year, but newer trade data support the Bank's expectation of renewed export growth.

Inflation is slightly above the Bank's forecast, partly because of temporary gasoline-price effects. Core measures have edged higher as spare capacity diminishes. Revisions show a higher level of GDP, but also imply higher productive capacity, so the Bank does not treat the revision alone as evidence that the economy is overheating.

The Bank still expects higher interest rates to be needed over time, but it holds while assessing sensitivity to the earlier increases, wage growth and remaining labour-market slack. The practical question for households is how the existing rate moves have changed their own cash flow. Before a purchase or renewal, compare the contract's payment mechanics and total ownership costs rather than extrapolate a single growth or inflation report.

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 3.20%
One-year conventional mortgage 3.24%
Three-year conventional mortgage 3.74%
Five-year conventional mortgage 4.99%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.99% posted five-year rate is approximately $1,743 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 6, 2017. 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. 25, 2017

Bank of Canada Holds at 1.00%: October 25, 2017

Bank of Canada Holds at 1.00%: October 25, 2017

The Bank of Canada holds at 1.00% on October 25, 2017. After two increases, the Bank pauses to assess sensitivity.

The decision at a glance

Policy measure Announcement
Overnight target 1.00%
Change No change
Bank Rate 1.25%
Deposit rate 0.75%

After two increases, the Bank pauses to assess sensitivity

The Bank forecasts 3.1% growth in 2017, moderating to 2.1% in 2018. The economy is operating close to potential, but wages and other labour indicators suggest some room remains. The question is whether additional workers and capacity can support growth without creating excessive inflation.

Household debt makes this assessment especially important. Housing and consumption are expected to slow in response to higher rates and housing-policy changes, and indebted households may react more strongly to rate increases than in the past. Meanwhile, a stronger dollar restrains exports and delays the projected return of inflation to 2% until the second half of 2018.

NAFTA renegotiation and other policy uncertainties add caution. The Bank says less support will probably be needed over time, but holds while it studies wages, inflation and the economy's response to the recent moves. An owner considering a larger mortgage can use that pause to compare payments under several renewal rates, rather than treat the current payment as permanent.

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 3.20%
One-year conventional mortgage 3.24%
Three-year conventional mortgage 3.64%
Five-year conventional mortgage 4.99%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.99% posted five-year rate is approximately $1,743 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 25, 2017. 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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