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Well, we got that Bank of Canada rate cut that everyone saw coming — and for all the wrong reasons.
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United States President Donald Trump‘s economic blitzkrieg — torching both our economy and his own — left the Bank of Canada with no choice but to act. That’s despite the semi-resilient economy Canada had coming into this mess.
If bond market expectations are right, and unless the tariff bomb is diffused pronto, those with variable-rate mortgages will see another cut by the central bank at its next meeting, on April 16.
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This could entice more Canadians to float their rates, which 36 per cent of prime borrowers did last month, according to data from Canada’s biggest mortgage originator, the Dominion Lending Centre Group.
I’d just remind folks to be aware of rising inflation expectations, which could combine with escalating tariffs, a weaker Canadian dollar and supply disruptions to fan the flames of inflation. If core inflation starts ramping higher again, rates will likely rebound, recession or not.
For those who do decide to rate surf, adjustable-rate mortgages can now be had for as little as 3.90 per cent at Nesto for an insured mortgage.
On the fixed side, Trump-related chaos is also driving down rates. Citadel mortgage is now as low as 3.83 per cent for insured loans.
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For uninsured borrowers, there’s less competition and lenders incur more costs: no insurance protection from defaults, less access to cheap securitization, higher regulatory capital costs, etc. As a result, uninsured borrowers can expect to pay at least 20 to 30 basis points more than the rates above.
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
Mortgage rates
The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.
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