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Fixed rates are heading up

Fixed mortgage rates are going up.   Already, TD Canada Trust has announced they are hiking rates by 0.25%.  Their new ‘best advertised rate’ is 4.39%.   They are also increasing their 5 year posted rate by 0.25% to 5.44%.  This posted rate is important if you are buying with less 20% down.   All Banks must qualify borrowers with the posted 5 year fixed rate, or the prescribed rate.

The bond market has climbed steadily over the past few weeks… 5 year Canadian Bond yield is at 2.74% today.  That’s an 8 month high.   The last time the bond was this high, the best 5 year fixed rate was 4.29%.

If you’re thinking of buying or refinancing, contact your mortgage broker and get a rate held.   Most Lenders offer a 120 day rate hold…. You can still get a 5 year fixed rate mortgage for under 4.00%.

On the bright side, these rate increases are a direct result of positive economic data that’s been coming out of Canada.  So although we don’t want to pay higher rates, we don’t want to have a weak economy either.

Steve Garganis View All

As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.

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