Who sets mortgage rates and do bonds affect rates?

Who sets the mortgage rates and what influences the current rates we see?

Eric Fabien from OttawaMortgageShop.com talks to Patrick Walchuk and they discuss who sets the mortgage rates, how they set them and what influences the changes in mortgage rates.

Timestamps

0:00 Intro

0:44 Who determines the mortgage rates in Canada

1:30 Do bonds determine mortgage rates or influence them

2:36 What the heck is the bond market

3:30 As inflation creeps up, what happens to bonds, hence mortgage rates too

4:16 What is this quantatative easing by the Central Bank (printing money)

5:04 Who is the OFSI - who slowed the market a few years ago, do they have an influence on rates

6:52 Does the Finance Minister control mortgage rates in any way

7:40 What is a MIC (mortgage investement corporation)

8:52 Are MIC rates much higher

9:30 What happens if I want to get out of my mortgage, I have heard of an IRD, what is that

11:50 Fixed Rate versus Variable rate mortgages

14:02 wrapup

For more information, contact Eric Fabien at OttawaMortgageShop.com