23 Mar

Don’t judge a bank’s mortgage by its hyped-up rate


Posted by: Drummond Team

The big banks are masterly in how they attract attention to their mortgage rate cuts.

Don’t buy the hype. For the best mortgage deals as defined by low rates and favourable terms, see a mortgage broker. You may still end up doing business with your bank, but failing to at least consult a broker is borderline personal-finance negligence.

Click here to read more.

The Globe and Mail

9 Mar

Market Commentary – Bank of Canada Announcement – 4-Mar-15


Posted by: Drummond Team


First National

Residential Market Update





Market Commentary

With the latest Bank of Canada interest rate announcement getting all of the fanfare, anyone looking for a fixed rate mortgage – and that is most Canadian homebuyers – is quietly reaping the benefits of ultra-low bond yields. And it looks like they will be able to benefit for the foreseeable future.

Yields on 5-year Government of Canada bonds have been as low as 0.73% in recent days. That is lower than the BoC’s 0.75% policy rate. Still demand remains constant as central banks and non-yield sensitive institutional investors, like pension funds and insurance companies, continue to buy these bonds.

Further, countries like Canada and the United States are cutting their deficits and, as a result, do not need to issue new bonds. That, too, is contributing to downward pressure on yields.

Jason Ellis
Managing Director, Capital Markets