Our Blog

Yields Spike. Fixed Rates May Follow.
 April 21 2015     Posted by Tracy Bennett


If you’re house hunting or thinking of refinancing, and you don’t have a mortgage rate hold, consider getting one.

Canada’s 5-year bond yield just pierced a 3-month high. That means—barring a big reversal—there’s a good likelihood that fixed rates will ratchet higher. (Bond yields steer fixed mortgage pricing, most of the time.)

A few lenders have already announced higher rates earlier today—with increases of 5-10 basis points on longer fixed terms.

 http://www.canadianmortgagetrends.com/.a/6a00d8341c74cb53ef01901cb2fc2e970b-pi

In less than a month the mortgage industry’s pricing benchmark (the 5-year GoC) has surged 33 basis points from its recent lows. That’s thanks in part to:

  • a brightening picture south of the border, including:
  • lower perceived global risk (which reduces demand for “safe” government bonds)
  • technical-related bond selling.

Call us today to arrange for a pre-approval or renewal rate lock….don’t be disappointed you have missed the low rates!


Bookmark and Share

SEO by:Local SEO Search Inc. Top SEO Agency in Toronto