{"id":12390,"date":"2025-03-26T05:06:12","date_gmt":"2025-03-26T05:06:12","guid":{"rendered":"https:\/\/finderica.com\/?p=12390"},"modified":"2025-03-26T05:06:12","modified_gmt":"2025-03-26T05:06:12","slug":"mortgage-digest-fixed-mortgage-rates-keep-falling-but-variable-rate-pricing-is-on-the-rise","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=12390","title":{"rendered":"Mortgage Digest: Fixed mortgage rates keep falling, but variable-rate pricing is on the rise"},"content":{"rendered":"
\n

If you\u2019re in the market for a mortgage this spring, you\u2019ve probably noticed fixed rates are continuing to trend lower. <\/p>\n

That\u2019s thanks in large part to falling bond yields, which drive fixed-rate pricing, and a fresh wave of spring competition among lenders.<\/p>\n

In the past week alone, some banks and monolines have cut 3- and 5-year fixed mortgage rates by 10 to 20 basis points. <\/p>\n

\u201cThe spring market starts now,\u201d mortgage analyst Ron Butler recently told Canadian Mortgage Trends<\/em>, pointing to what\u2019s typically the busiest\u2014and most competitive\u2014season in the mortgage cycle. With many high-ratio fixed rates now dipping below 4% for the first time in months, Butler says the pricing war is well underway.<\/p>\n

According to rate expert Ryan Sims, big banks are especially keen to compete right now after a sluggish start to the year for mortgage originations. That\u2019s translating into sharper fixed-rate offers.<\/p>\n

But it\u2019s a different story for variable rates. While the Bank of Canada\u2019s overnight rate dropped another 25 basis points earlier this month, lenders are quietly reducing their variable-rate discounts off prime\u2014effectively making new variable-rate mortgages more expensive. <\/p>\n

It\u2019s a trend that hasn\u2019t gone unnoticed by brokers and borrowers alike.<\/p>\n

As more borrowers look to variable products in anticipation of further BoC cuts\u2014as reflected in the latest big bank rate forecasts\u2014lenders are adjusting pricing to limit their exposure. <\/p>\n

Trimming VRM discounts helps rebalance their loan mix and offset the rising cost of hedging, explains Sims. <\/p>\n

\u201cWhen the proportion of variable-rate mortgages grows too large, lenders need to protect themselves by hedging\u2014and that protection comes at a cost,\u201d Sims said. \u201cHedging is like insurance. The price goes up when everyone wants it, and in a falling rate environment, that demand spikes across the board.\u201d<\/p>\n

\n
\n

Newton acquires 50% stake in Fastkey<\/h2>\n

Newton Connectivity Systems has acquired a 50% ownership stake in Fastkey Technology Ltd., fintech company known for its secure CRA document retrieval service and growing suite of financial screening tools.<\/p>\n

The partnership brings Newton\u2019s Velocity platform closer to full integration with Fastkey\u2019s income verification service, which pulls key documents\u2014such as Notices of Assessment and tax slips\u2014directly from the Canada Revenue Agency. The solution has been gaining traction among brokers looking to streamline approvals and reduce income fraud risk.<\/p>\n

\u201cInvesting in Fastkey brings Newton-Velocity closer to our desired outcome for
sustainable, long term access to critical employment and income confirmation
from CRA for both our Mortgage Broker and Lender customers,\u201d said Geoff Willis, CEO of Newton.<\/p>\n

Fastkey\u2019s CRA Service helps brokers and lenders verify income directly through official CRA channels\u2014reducing the risk of forged documents and income-related fraud. The company also offers tools for biometric ID verification, AML and PEP screening, criminal record checks, title searches, and more.<\/p>\n

\u201cThis partnership will help us accelerate the development of our solutions and ensure that mortgage brokers across Canada have the most powerful financial screening tools at their fingertips,\u201d said Shane Nercessian, CEO of Fastkey.<\/p>\n

\n

Servus CU grows to $29.4B in assets following connectFirst merger<\/h2>\n

Alberta-based Servus Credit Union\u2014now operating under the combined banner with connectFirst\u2014reported strong Q1 financials in its first full quarter as a combined entity.<\/p>\n

As of Q1:<\/p>\n