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.