January 10, 2018
"Nearly half of all existing mortgages in Canada will need to be renewed in this year, substantially more than in prior years, according to a new report, amid rising interest rates and new rules that make it tougher for some borrowers to shop around.
A CIBC Capital Markets report says an estimated 47 per cent of all existing mortgages will need to be refinanced this year, up from the 25 to 35 per cent range in a typical year.
The increase is an unintended consequence of various rounds of regulatory changes aimed at reducing risk coupled with rising house prices that made it harder for homebuyers to qualify, says CIBC's executive director and head of North American Rates Strategy.
Ian Pollick says borrowers in recent years have taken on mortgages with two- or three-year durations, which are now up for renewal alongside the typical five-year mortgages.
The increase in renewals comes as mortgage rates have been rising with five-year fixed rates up about half a percentage point compared with a year ago.
Meanwhile, new lending rules introduced this year stipulate that homeowners looking to renew their uninsured mortgage are subject to a new stress test, unless they stick with their existing provider, hobbling their ability to seek out a more competitive rate."
This "may" explain why I have been told by a number of folks there seems to be an increased demand for funds ( i.e. GIC deposits) by financial institutions in 2018.
December 4, 2016
I helped someone this year renew, just locked in a rate yesterday. They wanted to stay with the lender. Which made it hard to reduce the rate.
The Bank said 3.69 at first. Than said we went around and asked other banks and they said 3.29. Than they said 3.31.
Than we said we wont need to take out funds and the person isn't planning on moving for 5 years. They said there is a mortgage for that. A Closed Term Fixed Morgage
This type of mortgage wasn't offered until last year if i recall right for this instiution.
I tried to get them to renew last year at 2.49 percent with transfer fees about 2.69 percent (the hassle charge me and them decide was worth about .4 percent so like 3.09 and i advised it probably wouldn't incrase that much) at HSBC. They didn't want to. Also, This year at 3.04 percent with the same type mortgage at their instution but they weren't for it as it was 6 months out.
I than tried to get them to change lenders as they could get 2.99 percent. At HSBC. They just wanted something simple and easy. I think they got the best option they could get considering the circumstances.
It's a loss of about 3,000 over the 5 year period (2.99 compared to 3.19) but the need to change stopped them.
The lending rates seem to be going up on Monday according to This redditor.
So, there was some urgency on Saturday to get the rate locked in. Now have to fill out paper work next Staurday.
February 27, 2018
But to be honest, a survey means nothing. I will wait for the banks to start crying about their defaults, autos are normally the first to report a loss on repayments.