Mortgage Digest: 5 big banks cut fixed mortgage rates following bond yield drop

Despite having risen since the start of the month, bond yields are still down by more than 50 basis points (0.50%) from their January highs.

Since bond yields influence fixed mortgage rate pricing, BMO, CIBC, RBC, TD and National Bank responded with rate cuts across all mortgage terms ranging between 0.10% and 0.25%.

The big banks aren’t the only mortgage providers responding to lower yields; countless others having been dropping rates over the past two weeks.

Rate expert Dave Larock highlighted that bond yields have been pushed lower by the growing concerns over a potential trade war with the U.S. However, he cautioned that these same economic pressures could lead to rising rates if inflation resurfaces.

“Bond-market investors have initially reacted to the trade war threat by pushing down bond yields, but tariffs are fundamentally inflationary,” he wrote in his latest blog.

“In the medium term, if higher prices persist, and if opportunistic companies enact non-tariff related price increases, price pressures will broaden,” he added. “In that scenario, both bond yields and the fixed mortgage rates that are priced on them will rise.”

Ron Butler of Butler Mortgage agrees, telling Canadian Mortgage Trends that the latest forecasts out of the U.S.–for only one quarter-point cut at the end of the year, or potentially no more at all–are likely to drive conventional rates higher again by another 20 bps.

However, he expects mortgage competition to remain fierce heading into the upcoming spring market.

“I fully expect banks to be very competitive in the spring real estate market. RBC & CIBC are non-broker channel lenders who seem determined to gain share & hold onto all their renewals,” he said.

“Banks are prepared to compete on every mortgage term, including high-ratio, and I do not believe that will change,” he added.

As we recently wrote, 5-year variable rates are now nearly on par with fixed equivalents following six consecutive rate cuts from the Bank of Canada. This means borrowers are increasingly faced with the decision of weighing potential savings against the heightened market volatility.

Mortgage broker industry sets record by raising $775,000 for cancer research

The mortgage industry has made fundraising history, raising $775,000 for cancer research through the Strike Out Cancer campaign.

As we previously reported, the fundraiser followed 2023’s inaugural event, and saw 45 corporate sponsors in the mortgage industry partner with the Princess Margaret Foundation to host bowling events in nine locations across Canada.

Don Stoddart, founder of the Strike Out Cancer initiative, previously told CMT, “It’s incredible how one small thought could turn into such a miracle. People really stepped up; it’s really been quite rewarding.” Stoddart founded the event after losing several loved ones to cancer, aiming to honor them through fundraising efforts.

The funds raised will contribute to vital cancer research.

Insolvent homeowners see sharp decline in home equity

Insolvent homeowners in 2024 experienced a dramatic drop in home equity, with the average equity value now just 10%, down from 21% a year earlier, according to data from Hoyes, Michalos & Associates Inc. These homeowners carried an average mortgage of $555,853, and one in seven (14%) now face negative equity.

The percentage of insolvent debtors who owned a home remained low at 5%, slightly up from 4% the previous year. In addition to their mortgages, these homeowners owed an average of $99,429 in unsecured credit and $34,108 in non-mortgage secured debt.

“Financial stress among homeowners is expected to escalate due to higher mortgage renewal rates, potentially doubling the proportion of homeowner insolvencies to 8-10%,” the report notes.

Credit card debt among insolvent Canadian debtors also reached a record high of $20,398, up 26% from last year, while total debt for insolvent debtors also rose 12% to $60,678, the largest annual rise since the study began in 2011.

National Bank completes acquisition of Canadian Western Bank

National Bank of Canada officially completed its $5.6 billion acquisition of Canadian Western Bank (CWB) earlier this month after receiving final regulatory approval.

The deal marks National Bank’s most significant expansion into Western Canada, enhancing its presence in key markets such as Alberta and British Columbia.

“This transaction will allow us to deliver a stronger banking choice for all Canadians and Canadian businesses. Our combined organization will provide customers with an expanded product and service offering nationally, while maintaining regional expertise,” said Laurent Ferreira, President and CEO of National Bank. “We will pull strengths from our collective network and further extend the depth and breadth of our banking capabilities.”

The acquisition by National Bank of Canada will bring 65,000 new customers and nearly 40 branches under its umbrella.

RPS index reports 4.65% YoY increase in national home prices

Canada’s residential real estate market is showing positive momentum, with the RPS House Price Index reporting a 4.65% year-over-year increase in national home prices as of January.

“Recent consecutive interest rate cuts by the Bank of Canada have injected renewed energy and optimism into Canada’s residential real estate market, leading to a surge of new listings across much of the country,” the report notes. “This activity reflects sellers’ hopeful anticipation of buyers looking to take advantage of lower mortgage rates as we approach the spring market.”

While sales activity has remained stable or slightly lower compared to last year, many markets are seeing stable to moderate price increases month-over-month.

Quebec led the way with prices up 17.26%, followed by Calgary, Edmonton and Winnipeg, where the index was up just over 10%.

Toronto and Vancouver experienced more modest gains of 2.51% and 2.22%, while Victoria remains the only major market still seeing negative growth, though it’s slowly edging closer to positive territory.

Mortgage snippets

Mortgage arrears held steady in November: Canada’s national mortgage arrears rate remained unchanged at 0.21% in November, with 10,480 mortgages three or more months overdue, according to the Canadian Bankers Association (CBA). While up from the pandemic low of 0.14% recorded in 2022, the arrears rate remains low by historical standards.
Saskatchewan leads with the highest arrears rate at 0.59% (up from 0.58% in October), while Quebec, and British Columbia share the lowest rate at 0.17%. Ontario saw its arrears rate tick higher to 0.18%.

Michelle Alexopoulos appointed external Deputy Governor at Bank of Canada, effective March 17, 2025. Dr. Alexopoulos, a professor of economics at the University of Toronto, brings expertise in macroeconomics, technological change, and central bank communications.
Governor Tiff Macklem expressed confidence that her knowledge will contribute to the Bank’s policy decisions. Her appointment brings the Governing Council to seven members, and she will continue her academic role part-time while working at the Bank.

Next Steps: Mortgage industry career moves

Dexter John named new CEO of FSRA

The Financial Services Regulatory Authority of Ontario (FSRA) has announced the appointment of Dexter John as its new Chief Executive Officer, effective March 1. John brings over 25 years of leadership experience in governance, risk management, and regulatory affairs.

Currently the President and CEO of Morrow Sodali (Canada) Ltd., John has advised on corporate governance, ESG initiatives, and shareholder engagement. He has also held senior positions at D.F. King Canada, Kingsdale Shareholder Services Inc., and the Ontario Securities Commission. In addition, he has been a member of FSRA’s Board of Directors, where he contributed to the Business Technology Transformation Committee and other initiatives.

“Mr. John’s leadership and strategic insight will be invaluable as FSRA continues to modernize Ontario’s financial services regulatory framework, engaging collaboratively with FSRA’s stakeholders and deliver regulatory efficiency and effectiveness,” said Joanne De Laurentiis, Chair of the FSRA Board of Directors.

Jessica Toppazzini appointed Western Canada VP and Managing Director at CMLS

CMLS has announced the appointment of Jessica Toppazzini as Vice President and Managing Director, Western Canada, effective immediately.

With over a decade of experience in commercial real estate, including leadership roles at Avison Young and Garnett Wilson Realty Advisors, Jessica brings a wealth of expertise in strategic growth, client relationship management, and team development.

“This new role is an incredible opportunity to work with a dynamic team that shares my passion for innovation, collaboration, and delivering meaningful results in the commercial real estate space,” she wrote in a social media post. “I’m looking forward to contributing to CMLS’s legacy of excellence while embracing the challenges and opportunities ahead.”

Serge Lessard named Quebec Head of Residential Sales at CMLS

CMLS has announced the appointment of Serge Lessard as Head of Residential Sales for Quebec, effective immediately. With over 16 years of experience in the mortgage industry, Lessard brings extensive knowledge of the Quebec market. He previously served as Mortgage Development Manager and Director of Mortgage Operations at nesto.

In this role, Lessard will focus on driving innovation and supporting mortgage brokers across Quebec, CMLS noted.

“Serge will be working closely with brokers to provide cutting-edge solutions while fostering strong partnerships,” said Andrew Gilmour, Senior Vice President at CMLS Financial. “His commitment to excellence will help us thrive in a dynamic mortgage ecosystem.”

This appointment is part of CMLS’s 2025 strategy to increase its market share across Canada and strengthen its relationships with Quebec brokers.

Michael Wolfe named Vice President, Residential Credit at EQ Bank

EQ Bank has announced the appointment of Michael Wolfe as Vice President, Residential Credit.

With nearly 19 years of experience, Wolfe has held senior roles at EQ Bank, including Regional Vice President of Residential Credit and Director of Residential Mortgage Underwriting.

His leadership extends beyond EQ Bank, having served as a director on Mortgage Professionals Canada’s Board of Directors for 10 years, including as Chair of the Board in 2018-2019, and as a director at the Alberta Mortgage Brokers Association.

Lois Tullo appointed to CAMLA Board of Directors

Lois Tullo, a seasoned executive with over 30 years of experience in risk, finance, compliance, and corporate governance, has joined the Board of Directors of the Canadian Alternative Mortgage Lenders Association (CAMLA).

“I am pleased to join the Board of CAMLA, which has been doing important work on AML, regulation, and the economic outlook,” Lois said in a post.

Currently serving as CFRO/CCO of Kuber MIC and CCO/CRO of YAMCP, Lois brings expertise in risk management and regulatory issues. She is also an Executive in Residence at the Global Risk Institute and teaches risk management at the Schulich School of Business. Lois is passionate about developing future risk leaders and is the founder of the Emerging Leaders Program.

“Next Steps” is a feature in our Mortgage Digests that highlights notable job changes and career advancements within the mortgage industry. If you have a job update to share, we welcome your submissions to keep the community in the loop.