Mortgage Rates Fully Adjusted in Canada

Well, we’ve seen some massive rate increases from most of our lenders in the past week and a half. This has been in response to bond yields increasing.

If you’re a news junkie and want to track this stuff, you can watch bond yields (like the 5 year), add 1.70-1.80 points to it, and that should be the expected 5 year rate. If the actual rate is quite a bit below that, then it’s safe to say rates will be increasing.

If the actual rate is above that target, then you can safely assume that fixed rates should fall. Keep in mind that interest rates are like gas prices – fast to go up, and slow to go down…but there is more competition in the mortgage industry than in gas, so someone is almost always willing to give you a deal.