Fixed mortgage rates are married to bond yields. As a mortgage broker I constantly look towards the 5 year Government of Canada bond yield to forecast where rates are heading to advise clients. Bond yields and fixed rate mortgages have a positive relationship. Put another way, when the yield on 5 year Canadian Bonds increases, the mortgage interest rate for a fixed 5 year mortgage also increases. Over the past 3 weeks we have observed an interesting trend. The bond yield has increased from 2.52% to 2.82%, an increase of +0.30% and yet lenders are not budging on their historically low interest rate offerings. If past trends are anything to go by a rate increase is just around the corner. In the mean time the following rates are still being offered.
Christopher Molder – Son Of A Broker
1 year fixed – 2.55%
3 year fixed – 3.35%
5 year fixed – 3.79%
SPECIAL * 5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)
3 year variable – Prime-.50% (1.75% effective rate)
5 year variable – Prime-.40% (1.85% effective rate)
March 22, 2010
