![\"\"](\"https:\/\/i0.wp.com\/www.canadianbusiness.com\/wp-content\/uploads\/2013\/05\/mortgage-rates-graphic.jpg?resize=562%2C327\")
<\/p>\nFour times in the past four years, Flaherty has tightened mortgage insurance rules, each time making it a little more difficult to get home financing. And although household debt continues to hit new record highs\u2014reaching 165% of disposable income by the end of last year\u2014Flaherty has succeeded in slowing housing activity in Canada. But that comes at the expense of the mortgage market, which is the largest of the banks\u2019 lending businesses. Mortgages in the banking sector are currently growing at about 6% a year\u2014half of the pre-recession rate of growth. \u201cThe competition between institutions is so fierce that they really have no choice but to compete by offering as low a rate as they possibly can,\u201d\u00a0\u00a0says John Andrew, a real estate professor at Queen\u2019s University.<\/p>\n
<\/p>\n
Lenders still make money on low-rate mortgages. Their profit margins are roughly measured by the difference between mortgage rates and the banks\u2019 own costs of borrowing, which is approximated by the Bank of Canada\u2019s five-year benchmark bond rate\u2014about 1.2%. Most of the money the banking sector lends out is provided by retail deposits, supplemented by borrowing on the \u201cwholesale\u201d market. The minimum spread at which a bank would be willing to offer five-year mortgages is about 140 basis points, says Ohad Lederer, a financial services analyst at Veritas Investment Research. That would put a floor on five-year mortgage rates of about 2.6%\u2014assuming the five-year bond rate doesn\u2019t fall any further. Variable or shorter-term mortgages are already available for even less.<\/p>\n
\u00a0Source :\u00a0http:\/\/www.canadianbusiness.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Four times in the past four years, Flaherty has tightened mortgage insurance rules, each time making it a little more difficult to get home financing. And although household debt continues to hit new record highs\u2014reaching 165% of disposable income by the end of last year\u2014Flaherty has succeeded in slowing housing activity in Canada. But that … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[61,58,68],"tags":[47,14,16,101],"class_list":["post-1091","post","type-post","status-publish","format-standard","hentry","category-info","category-real-estate-2","category-statistics","tag-analyse-marche-residentiel","tag-news","tag-real-estate","tag-statistics"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p1UEHj-hB","_links":{"self":[{"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/posts\/1091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/comments?post=1091"}],"version-history":[{"count":2,"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/posts\/1091\/revisions"}],"predecessor-version":[{"id":1093,"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/posts\/1091\/revisions\/1093"}],"wp:attachment":[{"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/media?parent=1091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/categories?post=1091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.olgaouspenski.net\/blogwp1\/wp-json\/wp\/v2\/tags?post=1091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}