Money TD discounts variable mortgage rate

20:36  15 may  2018
20:36  15 may  2018 Source:   msn.com

Should I raid my RRSP to pay off my line of credit?

  Should I raid my RRSP to pay off my line of credit? It’s tempting to cash out RRSPs but watch out for the tax biteI currently participate in a DB pension and am in a fairly safe/steady employment position. My RRSP is currently sitting at $150,000 and my salary is approximately $115,000.

TD Bank is joining a rival bank in offering a highly discounted variable mortgage rate as competition among Canada's biggest lenders heats up.

TD Bank is joining a rival bank in offering a highly discounted variable mortgage rate as competition among Canada’s biggest lenders heats up. The Toronto-based bank said on Tuesday it’s lowering its five-year variable closed rate to 2.45 per cent, or

Related video: 5 secrets from real estate insiders [Provided by GoBankingRates] 

TORONTO - TD Bank is joining a rival bank in offering a highly discounted variable mortgage rate as competition among Canada's biggest lenders heats up.

The Toronto-based bank said Tuesday it's lowering its five-year variable closed rate to 2.45 per cent, or 1.15 per cent lower than its TD Mortgage Prime rate, until May 31.

TD's special rate follows last week's move by the Bank of Montreal, which discounted its variable mortgage rate to 2.45 per cent until the end of May.

Big Six rate hikes could trigger rise in qualifying rate

  Big Six rate hikes could trigger rise in qualifying rate Canada's Big Six banks have all increased their benchmark fixed-rate mortgage rate, a move analysts say could trigger a rise in the Bank of Canada's qualifying mortgage rate as early as Wednesday , making it more difficult for some to take on home loans. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.

TD ’s discounted rate brings its variable mortgage rate offer in line with BMO’s. “ TD is not lying down,” McLister said. “ Mortgage growth is the lowest since 2001, you’ve got interest rates going up, and less people getting mortgages because of that…

TD Bank is joining a rival bank in offering a highly discounted variable mortgage rate as competition among Canada's biggest lenders heats up.

Canada's lenders often offer special spring mortgage rates as homebuying activity picks up, but Robert McLister — founder of rate comparison website RateSpy.com — said last week that BMO's special discounted variable rate was the biggest widely advertised discount ever by a Big Six Canadian bank.

TD's discounted rate on Tuesday brings its variable mortgage rate offer in line with BMO's.

"TD is not lying down," McLister said Tuesday. "Mortgage growth is the lowest since 2001, you've got interest rates going up, and less people getting mortgages because of that... They have the ability to match this rate and still make money."

TD spokeswoman Julie Bellissimo says its special five-year variable rate applies to new and renewed mortgages, as well as the variable rate term portion of certain TD home equity lines of credit.

Bank of Canada's mortgage 'stress test' lending rate climbs higher

  Bank of Canada's mortgage 'stress test' lending rate climbs higher Obtaining a mortgage is getting more expensive for some Canadians as a rate used for borrower stress testing moved higher on Wednesday. define("homepageFinanceIndices", ["c.deferred"], function () { var quotesInArticleFormCode = "PRMQAP"; var config = {}; config.indexdetailsurl = "/en-ca/money/indexdetails"; config.stockdetailsurl = "/en-ca/money/stockdetails"; config.funddetailsurl = "/en-ca/money/funddetails"; config.etfdetailsurl = "/en-ca/money/etfdetails"; config.recentquotesurl = "/en-ca/money/getrecentquotes"; config.

TD Bank is joining a rival bank in offering a highly discounted variable mortgage rate as competition among Canada’s biggest lenders heats up.

A variable rate mortgage differs from a fixed rate mortgage in that rates during some portion of the loan’s duration are structured as variable . Lenders offer both variable rate and adjustable rate mortgage loan products with differing variable rate structures.

"We are confident this is a strong offer for new and renewing customers, while ensuring we remain competitive in a changing environment," Bellissimo said in an emailed statement.

The moves come amid slowing mortgage growth. The Canadian Real Estate Association said Tuesday that national home sales volume sank to the lowest level in more than five years in April, falling by 13.9 per cent from the same month last year. The national average sale price decreased by 11.3 per cent year-over-year.

Home sales have slowed due to various factors, including measures introduced by the Ontario and B.C. governments to cool the housing market, such as taxes on non-resident buyers.

Other headwinds for mortgage growth include higher interest rates and a new financial stress test that makes it more difficult for would-be homebuyers to qualify with federally regulated lenders, such as the banks.

It’s getting more confusing to shop for mortgages

  It’s getting more confusing to shop for mortgages Longer mortgages are rising, short-term posted rates are falling. What is the MQR, anyway?

TD Bank is joining the Bank of Montreal (BMO) in offering a highly discounted variable mortgage rate as competition among Canada’s biggest lenders heats up. The Toronto-based bank said Tuesday it’s lowering its five-year variable closed rate to 2.45 per cent

Variable mortgage rates are typically lower than fixed rates , but can vary over the duration of the term. Variable mortgages are prone to market behaviour (via the prime rate ) which affects your payments. TD Bank Mortgage Rates .

As of Jan. 1, buyers who don't need mortgage insurance must prove they can make payments at a qualifying rate of the greater of two percentage points higher than the contractual mortgage rate or the central bank's five-year benchmark rate. An existing stress test also stipulates that homebuyers with less than a 20 per cent down payment seeking an insured mortgage must qualify at the central bank's benchmark five-year mortgage rate.

The tighter lending rules are making it harder for homebuyers to qualify for uninsured mortgages, and shrinking the pool of qualified buyers for higher-priced homes, CREA's chief economist Gregory Klump said in April.

a sign on a window © Provided by thecanadianpress.com

Meanwhile, Canada's largest lenders all raised their benchmark posted five-year fixed mortgage rates in recent weeks as government bond yields increased, signalling a rise in borrowing costs.

In turn, the central bank's five year benchmark qualifying rate — which is calculated using the posted rates at the Big Six banks — increased last week to 5.34 per cent. This qualifying rate is used in stress tests for both insured and uninsured mortgages, and an increase means that the bar is now even higher for borrowers to qualify.

As well, since July, the Bank of Canada has raised interest rates three times to 1.25 per cent, putting added pressure on consumers. But a rising interest rate environment also means that the margins — or profit made on loans — on mortgages for banks will improve if interest rates rise. Rising interest rates also drive up demand for fixed-rate mortgages, and banks may discount variable mortgage rates in an effort to balance the books, according to McLister.

Companies in this story: (TSX:TD, TSX:BMO)

Kevin O'Leary: Here's the age by which you should have your debt paid off .
"Shark Tank" investor and author Kevin O'Leary explains how you should plan to pay down your debt and prepare for retirement.But in order to retire in your 60s, you need to get started down the right financial path early by saving and minimizing unnecessary debt, according to Kevin O'Leary, an investor on ABC's "Shark Tank" and personal finance author.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!