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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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May 25, 2016

Bank of Canada Holds at 0.50%: May 25, 2016

Bank of Canada Holds at 0.50%: May 25, 2016

The Bank of Canada holds at 0.50% on May 25, 2016. Alberta's wildfires interrupt an already uneven recovery.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change No change
Bank Rate 0.75%
Deposit rate 0.25%

Alberta's wildfires interrupt an already uneven recovery

The Alberta wildfires are expected to subtract about 1.25 percentage points from second-quarter GDP growth through damage and interrupted oil production. The Bank expects a third-quarter rebound as production resumes and rebuilding starts. It treats this as a major disruption with a different timing pattern from a lasting collapse in nationwide demand.

The broader oil-price adjustment remains uneven. Business investment and investment intentions are disappointing, even as US employment and other indicators support expectations of stronger American growth. Oil prices have risen, partly because of temporary supply interruptions, so the higher price alone does not establish a durable turnaround.

Inflation is broadly on track: headline CPI remains slightly below 2%, while core measures are near target. At the same time, housing conditions differ sharply by region and household vulnerabilities are increasing. The Bank holds rather than respond mechanically to the expected weak quarter. A Greater Sudbury household should keep financing and income contingencies in its plan instead of assuming that every national growth setback will bring a rate 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 2.70%
One-year conventional mortgage 3.14%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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 25, 2016. 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 13, 2016

Bank of Canada Holds at 0.50%: April 13, 2016

Bank of Canada Holds at 0.50%: April 13, 2016

The Bank of Canada holds at 0.50% on April 13, 2016. Federal spending supports an otherwise softer forecast.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change No change
Bank Rate 0.75%
Deposit rate 0.25%

Federal spending supports an otherwise softer forecast

The first quarter looks stronger than expected, but the Bank warns that temporary factors will likely reverse in the second. The adjustment to cheaper oil continues: energy investment is falling more deeply than previously forecast, and a firmer Canadian dollar and softer foreign demand weigh on non-resource exports.

The March federal budget changes the balance. Its fiscal measures provide enough support to offset what would otherwise be a modest growth downgrade. The Bank now projects Canadian growth of 1.7% in 2016, 2.3% in 2017 and 2% in 2018, with spare capacity potentially absorbed in the second half of 2017.

Employment is growing overall, especially in services, despite losses in resource-intensive regions. Headline inflation remains below target, and core inflation near 2% still reflects opposing currency and capacity effects. The hold leaves monetary support in place while fiscal measures enter the picture. For Sudbury buyers and sellers, a national growth upgrade should not replace a check on local employment, the specific property and the total monthly cost.

What this means for a mortgage

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

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

Posted reference Rate
Prime 2.70%
One-year conventional mortgage 3.14%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 per month for principal and interest, using Canadian semi-annual compounding. This is an illustration, not a lender quote. Taxes, insurance, utilities, closing costs and qualification requirements are separate.

Put the announcement into a Greater Sudbury plan

Buying or renewing

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

Preparing to sell

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

Official announcement: Bank of Canada, April 13, 2016. 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 9, 2016

Bank of Canada Holds at 0.50%: March 9, 2016

Bank of Canada Holds at 0.50%: March 9, 2016

The Bank of Canada holds at 0.50% on March 9, 2016. Exports improve while investment remains the weak link.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change No change
Bank Rate 0.75%
Deposit rate 0.25%

Exports improve while investment remains the weak link

The fourth quarter was not as weak as the Bank feared, but its near-term outlook is little changed. Household spending and employment remain resilient nationally, while resource-intensive regions continue to lose jobs. Non-energy exports are gaining momentum, especially in industries that benefit from the lower dollar; overall business investment is still very weak.

Oil and the Canadian dollar have both recovered from recent lows. Their averages remain close to the assumptions in January's forecast, so those movements do not yet require a new policy direction. Financial-market volatility is also easing, although the Bank still sees downside risks to global growth.

Headline inflation has reached 2%, but the Bank expects some of the factors behind that rise to unwind. Core measures at or just below 2% are temporarily lifted by earlier currency depreciation while spare capacity restrains prices. The coming federal budget will be incorporated in April's forecast. A borrower should therefore distinguish today's hold from a commitment about future rates or the effect of spending measures that have not yet been assessed.

What this means for a mortgage

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

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

Posted reference Rate
Prime 2.70%
One-year conventional mortgage 3.14%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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 9, 2016. 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, 2016

Bank of Canada Holds at 0.50%: January 20, 2016

Bank of Canada Holds at 0.50%: January 20, 2016

The Bank of Canada holds at 0.50% on January 20, 2016. Lower commodity prices delay the recovery.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change No change
Bank Rate 0.75%
Deposit rate 0.25%

Lower commodity prices delay the recovery

Another decline in oil and other commodity prices is a setback for Canada. The Bank estimates that growth likely stalled in the fourth quarter of 2015 and now expects above-potential growth to resume in the second quarter of 2016. Weak business investment remains an important drag, even while household spending and national employment are holding up.

The revised forecast calls for about 1.5% growth in 2016 and 2.5% in 2017. The Bank expects spare capacity to persist until around the end of 2017. It has not yet included the expected measures in the next federal budget, so the forecast should not be read as a settled account of all policy support coming this year.

Cheaper energy and economic slack keep headline inflation low, partly offset by more expensive imports as the dollar falls. The Bank expects inflation near 2% by early 2017 and judges the risks balanced enough to hold. For Greater Sudbury households, low rates remain helpful, but the resource adjustment makes income resilience and a realistic ownership budget as important as the lender's rate.

What this means for a mortgage

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

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

Posted reference Rate
Prime 2.70%
One-year conventional mortgage 3.14%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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, 2016. 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. 2, 2015

Bank of Canada Holds at 0.50%: December 2, 2015

Bank of Canada Holds at 0.50%: December 2, 2015

The Bank of Canada holds at 0.50% on December 2, 2015. Two economies are adjusting at different speeds.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change No change
Bank Rate 0.75%
Deposit rate 0.25%

Two economies are adjusting at different speeds

The resource sector remains under pressure as commodity prices fall further, while exports outside resources are gaining ground, particularly where a lower Canadian dollar helps competitiveness. The Bank expects growth to moderate in the fourth quarter before strengthening in 2016. It keeps the rate unchanged because the economy is progressing broadly along October's forecast.

The national employment picture is resilient, but that masks significant losses in resource-producing regions. Business investment remains weak because resource companies are reducing spending. This matters for household decisions: a favourable national growth number does not tell a worker how secure their own income is during the adjustment.

Headline inflation remains near the bottom of the target range because of cheaper energy. Core inflation near 2% reflects the weaker dollar offsetting spare capacity, not an economy that has fully recovered. Household vulnerabilities continue to rise. With bond yields slightly higher despite the policy hold, borrowers should compare actual mortgage quotes and retain enough room for ownership costs beyond principal and interest.

What this means for a mortgage

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

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

Posted reference Rate
Prime 2.70%
One-year conventional mortgage 3.14%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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 2, 2015. 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. 21, 2015

Bank of Canada Holds at 0.50%: October 21, 2015

Bank of Canada Holds at 0.50%: October 21, 2015

The Bank of Canada holds at 0.50% on October 21, 2015. A rebound is underway, but resource weakness lasts longer.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change No change
Bank Rate 0.75%
Deposit rate 0.25%

A rebound is underway, but resource weakness lasts longer

Canada's economy has rebounded as the Bank expected in July. Non-resource activity is showing clearer strength, helped by previous rate cuts and the weaker dollar. Household spending continues to support growth. The hold acknowledges that improvement without treating it as a complete recovery.

Lower oil and other commodity prices are still reducing export income and resource investment. The Bank trims its growth outlook for 2016 and 2017, projecting just over 1% growth this year, about 2% next year and 2.5% in 2017. Weaker investment also changes its assessment of how quickly the economy can expand without inflation.

Underlying inflation remains around 1.5% to 1.7%; core inflation near 2% partly reflects temporary currency effects. The Bank expects full capacity around mid-2017 and considers inflation risks roughly balanced. Household financial vulnerabilities are nevertheless rising. For a homeowner renewing or taking on a larger property, today's supportive rate is a reason to compare financing carefully, not to dispense with a repair reserve or payment cushion.

What this means for a mortgage

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

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

Posted reference Rate
Prime 2.70%
One-year conventional mortgage 2.89%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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 21, 2015. 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, 2015

Bank of Canada Holds at 0.50%: September 9, 2015

Bank of Canada Holds at 0.50%: September 9, 2015

The Bank of Canada holds at 0.50% on September 9, 2015. Export improvement offsets renewed global uncertainty.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change No change
Bank Rate 0.75%
Deposit rate 0.25%

Export improvement offsets renewed global uncertainty

The Bank holds while the effects of its earlier cuts continue to reach the economy. Household spending and the US recovery are supporting activity. Recent data also show renewed momentum in exports that are sensitive to the Canadian dollar, providing an encouraging sign that the adjustment outside resources is progressing.

The uncertainty is global. Concerns about China and other emerging economies are increasing market volatility and putting further pressure on commodity prices. Canada's resource sector still faces a lengthy adjustment, with effects that can reach other industries. A lower dollar absorbs part of the shock, but it is not a complete offset.

Inflation remains consistent with July's outlook: cheaper energy depresses the headline measure, while currency effects help keep core inflation near 2%. The Bank judges the current rate appropriate for that balance. Greater Sudbury households should separate the financing benefit of low rates from their exposure to changing resource-sector income. Neither an unchanged rate nor one stronger export report settles the outlook for an individual employer or property.

What this means for a mortgage

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

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

Posted reference Rate
Prime 2.70%
One-year conventional mortgage 2.89%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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, 2015. 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, 2015

Bank of Canada Cuts to 0.50%: July 15, 2015

Bank of Canada Cuts to 0.50%: July 15, 2015

The Bank of Canada cuts to 0.50% on July 15, 2015. The 25-basis-point reduction moves the announced target from 0.75%. A weaker recovery prompts a second cut.

The decision at a glance

Policy measure Announcement
Overnight target 0.50%
Change -25 basis points
Bank Rate 0.75%
Deposit rate 0.25%

A weaker recovery prompts a second cut

The Bank now expects Canada's economy to have contracted modestly in the first half of the year. Energy companies are cutting investment more deeply, while exports outside energy have also disappointed. The weakness is therefore broader than the original oil-sector adjustment, leaving more spare capacity and less underlying inflation pressure.

Underlying inflation is estimated at 1.5% to 1.7%, despite core inflation near 2%. The Bank cuts to support demand and lowers its 2015 growth forecast to just over 1%. It expects growth to resume in the third quarter, led by non-resource activity, but does not project a return to full capacity until the first half of 2017.

The trade-off is household debt. Easier credit can help the economy adjust while also encouraging already-indebted households to borrow more. For a buyer, the useful response is to ask whether the new financing terms improve the budget for a suitable home—not simply whether they permit a larger loan. A seller still needs evidence from comparable local properties; the national cut does not establish a new Sudbury price.

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 2.85%
One-year conventional mortgage 2.89%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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, 2015. 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 27, 2015

Bank of Canada Holds at 0.75%: May 27, 2015

Bank of Canada Holds at 0.75%: May 27, 2015

The Bank of Canada holds at 0.75% on May 27, 2015. The inflation headline hides two opposing forces.

The decision at a glance

Policy measure Announcement
Overnight target 0.75%
Change No change
Bank Rate 1.00%
Deposit rate 0.50%

The inflation headline hides two opposing forces

Core inflation is above 2%, but the Bank estimates the underlying trend at only 1.6% to 1.8%. Import-price effects from the weaker Canadian dollar and some industry-specific increases are lifting the core measure, while economic slack restrains demand. That is why the Bank does not treat the higher core reading as a reason to raise rates.

The Bank's April outlook remains broadly intact. Canadian consumption is holding up despite the loss of income from cheaper oil, and it expects a stronger second quarter in the United States to help Canadian exports and business investment. The handover from resource-led growth is still uneven.

Bond yields have recently risen, and the Canadian dollar has strengthened alongside oil prices and a softer US dollar. Those movements matter even with an unchanged policy rate: fixed mortgage offers can change as funding markets move. The Bank is waiting to see whether these developments persist before changing its assessment. A borrower comparing offers should check the current written quote, not assume a policy hold freezes mortgage pricing.

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 2.85%
One-year conventional mortgage 2.89%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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 27, 2015. 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, 2015

Bank of Canada Holds at 0.75%: April 15, 2015

Bank of Canada Holds at 0.75%: April 15, 2015

The Bank of Canada holds at 0.75% on April 15, 2015. A stalled first quarter, with a rebound still expected.

The decision at a glance

Policy measure Announcement
Overnight target 0.75%
Change No change
Bank Rate 1.00%
Deposit rate 0.50%

A stalled first quarter, with a rebound still expected

The Bank estimates that Canada's economy stalled in the first quarter. It sees the oil shock arriving faster than expected, rather than becoming larger overall. That distinction explains why it holds the rate: the current weakness is serious, but the projected recovery still rests on stronger US demand, non-energy exports and easier financing.

The growth forecast is now 1.9% for 2015, followed by 2.5% in 2016. The Bank expects activity to recover in the second quarter and strengthen around mid-year. These are conditional expectations; a rebound in exports must eventually lead to investment and employment for the recovery to become durable.

Headline inflation is 1%, reflecting cheaper energy. Core inflation near 2% combines upward pressure from the weaker dollar with downward pressure from spare economic capacity. The Bank expects those forces to unwind as the economy returns to full capacity around the end of 2016. For households, today's hold leaves the financing backdrop supportive without removing the need to budget for income or property-cost surprises.

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 2.85%
One-year conventional mortgage 2.89%
Three-year conventional mortgage 3.39%
Five-year conventional mortgage 4.64%

Payment illustration: a $300,000 mortgage amortized over 25 years at the 4.64% posted five-year rate is approximately $1,684 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, 2015. 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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