Last week on Wednesday, Canada’s 5 year bond closed at 2.56% which is the biggest jump in 8 months. Because fixed mortgage rates are directly related to bond yields, this means that fixed rates are on their way up.
Due to the spike in bond yields, non-bank lenders have already raised their rates anywhere from 0.05 to 0.20% and The Big Five (the five largest banks in Canada) are already starting to follow suit.
Starting now will fixed mortgage rated continue to climb consistently over the next few years? We don’t know but the next 6 – 12 months will certainly set the pace.
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