Rate Alerts! | The Mortgage Girl

By: Mortgagegirl  09-12-2011
Keywords: Bank

The “Big Five Banks” is a colloquial expression for the five biggest banks that dominate the banking industry in Canada (Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal and Canadian Imperial Bank of Commerce).

All 5 Banks are classified as Schedule I banks, that is, domestic banks that operate in Canada under government charter, and they are all operationally headquartered in Toronto, Ontario. The banks’ shares are widely held, with any entity allowed to hold a maximum of twenty percent.

Latest Overnight Rate Forecast

Bank     2010     2011
BMO     1.00     2.25
CIBC     1.00     1.75
RBC     1.00     2.25
Scotia     1.00     1.75
TD        1.00       2.00
Year-end Avg     1.00     2.00
Chg vs Today     0.00     +1.00

(All figures rounded to the nearest 1/4 point increment.)

Latest 5-Year Government Bond Yield Forecast

Bank     2010     2011
BMO     2.03     3.05
RBC     2.45     3.50
Scotia     1.85     2.50
TD        2.30       3.10
Year-end Avg     2.16     3.04
Chg vs Today     +0.29     +1.17

(CIBC’s 5-year bond forecast was not available.)

Variable-Rate Mortgage Forecast

Most analysts now expect 5-year variable rates in the 3.25% range by year-end 2011.

Fixed-Rate Mortgage Forecast

Banks forecasts suggests deep-discounted 5-year fixed rates could rise to roughly 4.24% by year-end 2011.

Latest Overnight Rate Forecast

Bank 2010 2011
BMO 1.00 2.25
CIBC 1.00 1.75
RBC 1.00 2.25
Scotia 1.00 1.75
TD 1.00 2.00
Year-end Avg 1.00 2.00
Chg vs Today 0.00 +1.00

(All figures rounded to the nearest 1/4 point increment.)

Latest 5-Year Government Bond Yield Forecast

Government bond yields drive 5-year fixed mortgage rates.

Bank 2010 2011
BMO 2.03 3.05
RBC 2.45 3.50
Scotia 1.85 2.50
TD 2.30 3.10
Year-end Avg 2.16 3.04
Chg vs Today +0.29 +1.17

(CIBC’s 5-year bond forecast was not available.)

Variable-Rate Mortgage Forecast

Based on a 75-basis-point discount from prime, these forecasts suggests 5-year variable rates in the 3.25% range by year-end 2011.

Fixed-Rate Mortgage Forecast

Keywords: Bank

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