With all the economic excitement happening outside of our borders, especially with Italian government bond yields at worrying levels, the activity on Government of Canada bond yields appear to be boring by comparison. But boring isn’t a bad thing. Canada’s economy is fairly stable versus our neighbours in Europe and the US. In terms of movement of the GoC bond yields – there was very little. The 2-year, 3-year, 5-year, and 10-year bond yields all finished slightly higher for the week, but not enough to really impact lenders’ decision to move interest rates.
It’s the same story with variable mortgage rates – very little to no movement. The end of the fiscal year is approaching and lenders may be stingy on interest rate discounts because they’re attempting to meet year-end financial goals.
Current Mortgage Rates
Discounted weekly 5-year fixed mortgage rates and 5-year variable mortgage rates from January 2011 to the present.
Discounted weekly 5-year fixed mortgage rates and 5-year variable mortgage rates over the past five years.
What mortgage products are Canadians buying?
5-year variable rate mortgages have been losing popularity steam over the last couple of weeks as more and more lenders approach prime. 5-year fixed rate mortgages continue to remain the most popular mortgage product. Through Ratehub.ca, 2-year fixed rate mortgages have gained significantly in popularity as a consumer mortgage product. The 2-year fixed rate is the lowest interest rate that can be obtained currently on Ratehub.ca. As it stands, it is the best mortgage rate in Canada right now.
Note: This is simply a small sample size and does not represent the entire market. It does, however, offer some useful insight.