Mortgage Lenders such as banks, trust companies and credit unions, use 5 indicators when setting up their fixed mortgage rates. These 5 indicators are bond yield, lender competition, expenses, possible risks and profitability. These 5 indicators vary all the time and therefore rates will vary from one lender to another. Each mortgage lender decides their...
One basis point (“bps”) equals one one-hundredth of a percentage point (0.01%). On a $300,000 mortgage, a rate that is one bps higher boosts the payment by a scant $1.49 a month. From the way some folks select a mortgage, however, it might as well be $149 a month.
With 35-50% of home sales attributed to first-time buyers (depending on the year and survey), it’s vital for mortgage marketers and industry watchdogs to understand the traits and risks of this demographic. That includes understanding how well prepared young Canadians are to buy a home, and to handle rate hikes, price corrections and unemployment.