Barrie Mortgage Rates

Mortgage Rates in Barrie – Current Promotions

Barrie Mortgage Rates

  • 3.04% 3 Year fixed – Switch, Refinance or Purchase
  • 3.09% 5 Year Fixed – High Ratio Purchase
  • 3.79% 5 Year Fixed – Switch, Refinance or Purchase (insurable)
  • Variable Rate 2.1% – Conventional to 80% LTV
  • Variable Rate 2.0% – High Ratio Only
  • Reverse Mortgage 5.99% 5 Year Fixed – 5.49% Variable

Cashback rates on 5 year fixed (High Ratio Purchase)

  • 1% – 3.49%
  • 1.5% – 3.54%
  • 2% – 3.79%
  • 3% – 4.09%

Toronto GTA  (416)912-6200
Barrie Simcoe Muskoka  (705)717-5598
York Durham Peel  (289) 366-8334
Western Ontario  (226) 767-8867

Apply Now – online and printable applications

We service ALL of Ontario

* All rates are subject to approval and may be dependant on the Loan to Value.
** Private first and second mortgage rates may be higher depending on credit, location and property type.

Mortgage Rates effective as of October 2nd. 2017 for qualified residential properties. Rates are subject to credit approval and can change without notice. Actual APR (annual percentage rate) for these rates will be higher (approx 0.05% – 0.10%) and dependant on the associated costs involved in borrowing (legal, appraisal, title insurance, etc.)

Bank Prime Rate – 3.20% Bank of Canada overnight rate – 1% Benchmark Rate upon which most mortgage borrowers must qualify 4.89%.

Apply Online Now

Rates are subject to change and may be promotional rates that can end without notice.

This is just a sampling of the products and rates we offer. Please call for more information 705-717-5598

The mortgage rates posted here for informational purposes. These rates are subject to approval, and are generally only available to customers with an above average credit score. Mortgage Brokers can generally get you a better mortgage rate than offered by the major banks because they operate in the wholesale mortgage market. Large banks also offer mortgage rates in the wholesale market, however, do not generally make these wholesale mortgage rates available to the general public.

Mortgage rates are for single-family residential mortgages in Ontario, Canada. Mortgage rates are subject to change. Rates shown are examples and my no longer be available.

Five-year Government of Canada bond yields fell by two basis points last week, closing at 1.00% on Friday. Five-year fixed-rate mortgages are offered in the 2.49% to 2.59% range, and five-year fixed-rate pre-approvals are available at rates as low as 2.69%.

Five-year variable-rate mortgages are available in the prime minus 0.65% to prime minus 0.80% range, depending on the terms and conditions that are important to you.

Government of Canada bond yields settled down late last week and we narrowly avoided an increase in five-year mortgage rates. That said, the five-year bond yield has been on an upward trend for the past month and if this continues, five-year fixed rates will move higher in the near future.

Rates are subject to change daily and may have changed and are always subject to credit approval.

Please call:

Michael Curry at (705) 717-5598

VERICO The Mortgage Wellness Group
35 Worsley Street, Suite 201 (Head Office)
Barrie, ON
L4N 1L7

Bank of Canada maintains overnight rate target at 1/2 per cent

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Global growth in the first half of 2016 was slower than the Bank had projected in its July Monetary Policy Report (MPR), although the Bank continues to expect it to strengthen gradually in the second half of this year. The US economy was weaker than expected in the second quarter, notably reflecting a contraction in business and residential investment. While a healthy labour market and solid consumption should remain supportive of growth in the rest of the year, the outlook for business investment has become less certain. Meanwhile, global financial conditions have become even more accommodative since July.

While Canada’s economy shrank in the second quarter, the Bank still projects a substantial rebound in the second half of this year. Second-quarter GDP was pulled down by the Alberta wildfires in May and by a drop in exports that was larger and more broad-based than expected. Exports disappointed even after accounting for weaker business and residential investment in the United States, adjustments in the resource sector, and cutbacks in auto production. The economy is expected to rebound in the third quarter as oil production recovers, rebuilding commences in Alberta, and consumer spending gets an additional lift from Canada Child Benefit payments. As federal infrastructure spending starts to have more impact, growth in the fourth quarter is projected to remain above potential. While the strength in exports during July was encouraging, the ground lost over previous months raises the possibility that the profile for economic activity will be somewhat lower than anticipated in July.

Inflation is roughly in line with the Bank’s expectations. Total CPI inflation is below the 2 per cent target, mainly because of the temporary effects of lower consumer energy prices. Measures of core inflation remain around 2 per cent, reflecting offsetting effects of excess capacity and past exchange rate depreciation.

On balance, risks to the profile for inflation have tilted somewhat to the downside since July. At the same time, while there are preliminary signs of a possible moderation in the Vancouver housing market, financial vulnerabilities associated with household imbalances remain elevated and continue to rise. The Bank’s Governing Council judges that the overall balance of risks remains within the zone for which the current stance of monetary policy is appropriate, and the target for the overnight rate remains at 1/2 per cent.

Information note:
The next scheduled date for announcing the overnight rate target is 19 October 2016. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at that time.

Mortgage Rates in Barrie:

How to find the lowest mortgage rates in Barrie Ontario:

Get a hold of the very best mortgage offers in Ontario in the comparisons above. If you are looking for a home loan and are interested in more than just cheap rates – be sure to also pay attention to the mortgage terms and conditions. Find answers on open vs. closed mortgages, fixed vs. variable mortgages, and prepayment options in the frequently asked questions section below. Visit the other pages on this site to learn even more about mortgages.

Open or Closed mortgages?

Closed mortgages are more common than open mortgages due to the fact they typically have reduced interest rates and vary in their prepayment options. Closed mortgage rates can be either fixed or variable and the amount by which a prepayment is available is limited. Interest penalties are often enforced on any overpayment not included in the terms.

Open mortgages give you the ability to pay down as much principal as you decide, in any given year. Open mortgages are commonly chosen when the borrower is planning to move,  or anticipates receiving a lump sum of money in the foreseeable future.

Variable vs. Fixed mortgage rates?

Traditionally, fixed rate mortgages are the most popular choice for home mortgage financing as they have fixed interest rates that stay consistent for the term of the mortgage. This results in a constant mortgage payment for the entire mortgage term allowing homeowners the benefit of more controlled financial budgeting and planning.

Variable rate mortgages commonly have reduced interest rates than fixed. These variable rates are linked to the Bank’s prime rate and thus are likely to vary over the term of the mortgage. A variable rate mortgage suits people who want to save on interest but at the same time have available funds should rates rise.

How mortgage rates are calculated compared to regular loans:

Many Canadians are mystified by the mortgage calculations. They will often find that they can figure out loan interest and payments, but mortgages baffle them. The simple explanation of this is that loans are usually very simple to deal with, since the interest is compounded with every payment. Therefore, a loan at 6%, with monthly payments and compounding simply requires using a rate of 0.5% per month (6%/12 = 0.5%).

Unfortunately, mortgages are not as simple. With the exception of variable rate mortgages, all mortgages are compounded semi-annually, by law. Therefore, if you are quoted a rate of 6% on a mortgage, the mortgage will actually have an effective annual rate of 6.09%, based on 3% semi-annually. However, you make your interest payments monthly, so your mortgage lender needs to use a monthly rate based on an annual rate that is less than 6%. Why? Because this rate will get compounded monthly. Therefore, we need to find the rate that compounded monthly, results in an effective annual rate of 6.09%.

The latest news release from Stephen Poloz, Governor of The Bank of Canada.

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Inflation in Canada is evolving broadly as expected. Total CPI inflation remains near the bottom of the Bank’s target range as the disinflationary effects of economic slack and low consumer energy prices are only partially offset by the inflationary impact of the lower Canadian dollar on the prices of imported goods. As all of these factors dissipate, the Bank expects inflation will rise to about 2 per cent by early 2017. Measures of core inflation should remain close to 2 per cent.

The dynamics of the global economy are broadly as anticipated in the Bank’s October Monetary Policy Report (MPR), with diverging economic prospects and shifting terms of trade. China continues its transition to a more sustainable growth path and the expansion in the United States is on track, despite temporary weakness in the fourth quarter of 2015. The U.S. Federal Reserve has begun to gradually withdraw its exceptional monetary stimulus. While risks to the world outlook remain and have been reflected in sharp price movements in a range of asset classes, global growth is expected to trend upwards beginning in 2016.

Prices for oil and other commodities have declined further and this represents a setback for the Canadian economy. GDP growth likely stalled in the fourth quarter of 2015, pulled down by temporary softness in the U.S. economy, weaker business investment and several other temporary factors. The Bank now expects the economy’s return to above-potential growth to be delayed until the second quarter of 2016. The protracted process of reorientation towards non-resource activity is underway, helped by stronger U.S. demand, the lower Canadian dollar, and accommodative monetary and financial conditions. National employment remains resilient despite job losses in the resource sector and household spending continues to expand.

The Bank projects Canada’s economy will grow by about 1 1/2 per cent in 2016 and 2 1/2 per cent in 2017. The complex nature of the ongoing structural adjustment makes the outlook for demand and potential output highly uncertain. The Bank’s current base case projection shows the output gap closing later than was anticipated in October, around the end of 2017. However, the Bank has not yet incorporated the positive impact of fiscal measures expected in the next federal budget.

All things considered, therefore, the risks to the profile for inflation are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, as expected. The Bank’s Governing Council judges that the current stance of monetary policy is appropriate, and the target for the overnight rate remains at 1/2 per cent.

Information note:

The next scheduled date for announcing the overnight rate target is 9 March 2016. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 13 April 2016.

Press Conference by Stephen Poloz on Jan 7th 2016

Factors That Determine Mortgage Rates in Canada

For many years now, mortgage rates have remained at historically low levels in Canada, and most analysts expect them to increase progressively over the course of 2011 and 2012. Given the significant impact that mortgage rates have on the cost of homeownership and the housing market in general, this article focuses on the key factors that explain mortgage rate fluctuations in Canada.

First, it is important to note that the factors that determine variable mortgage rates are different than those that determine fixed mortgage rates.

Variable Mortgage Rates

Variable mortgage rates are essentially determined by commercial bank’s prime rates, which are mainly influenced by the Bank of Canada’s key interest rate. Thus, an increase in the key interest rate almost automatically leads to an equivalent increase in variable mortgage rates. The Bank of Canada raises its key interest rate when it wants to fight inflation.

Fixed Mortgage Rates

Fixed rate mortgage loans are primarily influenced by the yield on Canadian government bonds (bond yields) of corresponding maturity. The relationship between five-year mortgage rates and the yield on five-year Canadian government bonds is very closely tied. This is because bond rates represent the benchmark for financial institution’s cost of funds. The difference between the two rates (mortgage rates and bond yields) represents the yield that financial institutions require to lend the funds out on the mortgage market.

In order to understand mortgage interest rate fluctuations, we need to understand the factors that influence Canadian government bond yields.

Factors Influencing Bond Yields

There are many factors that influence bond yields. Bonds issued by the Canadian government are among the most liquid and least risky assets, since they are guaranteed by the Canadian government. A significant volume of bonds are traded daily in the market. The supply and demand game in the bond market determines their price, which, in turn, determines their yield. This yield can be seen as the minimum rate of return required by investors before investing their capital for a determined period. It is influenced by many factors, notably inflationary expectations, exchange rate risk, and the return on other financial assets.

Here is an example, taken from current events, that helps us to understand the recent movement in bond yields. In the spring of 2010, international investors fled from volatile stock markets, as well as from government bonds issued by certain troubled European countries caught in the midst of a sovereign debt crisis. Thus, many investors flocked to the safety of the Canadian government-bond market, which was considered less risky due to Canada’s economic and financial situation. The increase in demand for Canadian government bonds pushed their price up, which necessarily lowered their yield. The decrease in yield on five-year Canadian government bonds that took place during this period pushed down five-year mortgage rates, decreasing them from 6.25 per cent in April to 5.39 per cent in August 2010. In conclusion, mortgage rates in Canada are determined by many factors that are directly related to domestic economic activity and decisions made by Canadian financial authorities. They are also influenced by foreign economic conditions and investors’ perception of Canada’s financial and economic health.

Canada Holds Key Rate at 0.5%

The Bank of Canada left its benchmark overnight rate unchanged at 0.5 percent at its April 13th, 2016 meeting as widely expected, saying the inflation risks are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy. Also, the GDP growth forecast for 2016 was revised up to 1.7 percent from 1.4 percent previously. The Bank Rate was also left on hold at 3/4 percent and the deposit rate at 1/4 percent.
Statement by the Bank of Canada:
Growth in the global economy is expected to strengthen gradually from about 3 percent in 2016 to 3 1/2 percent in 2017-18, a weaker outlook than the Bank had projected in its January Monetary Policy Report (MPR). After a slow start to 2016, the US economy is expected to regain momentum, but with a lower profile and a composition that is less favourable for Canadian exports. Financial conditions have improved, partly in response to expectations of more accommodative monetary policy in some major economies.
Prices of oil and other commodities are off their earlier lows and slightly above levels assumed by the Bank in January, but remain well below historical averages. Nonetheless, the Bank expects deeper cuts to investment in Canada’s energy sector than were forecast in January. Meanwhile, the Canadian dollar has firmed, reflecting shifting expectations for monetary policy in Canada and the United States, as well as recent increases in commodity prices.
The Canadian economy’s complex structural adjustment to the oil price shock is ongoing and will dampen growth throughout the Bank’s projection horizon. First-quarter GDP growth appears to have been unexpectedly strong, but some of that strength is due to temporary factors and is likely to reverse in the second quarter. Still, it does appear that the positive forces at work in the economy are starting to outweigh those that are negative. Non-resource exports are expected to strengthen, but their profile is weaker than previously projected, in part because of slower foreign demand growth and the higher Canadian dollar. The economy continues to create net new employment, especially in services, despite job losses in resource-intensive regions. In this context, household spending continues to expand moderately. While business investment is still shrinking due to sizeable declines in the energy sector, it is expected to turn positive later this year. The complex adjustment figures importantly in the Bank’s annual review of the economy’s potential, which has resulted in a lower estimated range for potential output growth.
The combined effect of all of these global and domestic developments would have been a modest downgrade of the Bank’s outlook. However, the fiscal measures announced in the March federal budget will have a notable positive impact on GDP. The Bank now projects real GDP growth of 1.7 percent in 2016, 2.3 percent in 2017 and 2.0 per cent in 2018. This new growth profile, combined with the revised estimate for potential, suggests the output gap could close somewhat earlier than the Bank had anticipated in January, likely in the second half of 2017.
Inflation in Canada continues to track largely as the Bank anticipated. Total CPI inflation is below the 2 percent target and will likely ease further before returning to 2 percent as the effects of exchange rate pass-through and lower consumer energy prices unwind and the economy’s excess capacity diminishes. Measures of core inflation are close to 2 per cent and continue to reflect the offsetting influences of past exchange rate depreciation and excess capacity.
Overall, the risks to the profile for inflation are roughly balanced. Meanwhile, financial vulnerabilities continue to edge higher, in part due to regional shifts in activity associated with the structural adjustment underway in Canada’s economy. The Bank’s Governing Council judges that the overall balance of risks remains within the zone for which the current stance of monetary policy is appropriate, and the target for the overnight rate remains at 1/2 per cent.
Source: Trading Economics.