As variable-rate mortgage holders eagerly anticipate the Bank of Canada's first rate cut, fixed rates are heading in the other direction: up.
It seems that the Canadian bond market has a spring in its step these days. After hitting a low around 3.26% in January, the Government of Canada 5-year bond yield—which typically leads fixed mortgage rates—finished Tuesday's session at 3.63%.
After a short-lived upswing in bond yields last month that nudged some fixed mortgage rates higher, lenders are once again bringing them back down.
A sudden rise in bond yields this week could cause some lenders to reverse recent fixed mortgage rate cuts, experts say.
Nearly all of the country's big banks slashed their advertised fixed mortgage rates this week, in some cases by as much as 70 basis points (or 0.70%).
Several of Canada's big banks and numerous other lenders are offering a practical gift for borrowers this holiday season: lower mortgage rates.
For the first time since last spring, mortgage shoppers finally have a condition-free sub-5% fixed mortgage rate option.
Some new and innovative mortgage products have recently emerged to help Canadians manage the current high interest rate environment, perhaps most talked-about being True North Mortgages 1-year 4.99% fixed rate term.
Lenders have been dropping fixed mortgage rates over the past few weeks...except for the Big 6 banks. But that changed this weekend when three of the big banks finally lowered select rates.
Mortgage shoppers and those with upcoming renewals may see some rate relief next week thanks to a steep drop in bond yields.