Our expectation from the debt deal in US was that it may return the bond yields to their past glories, soon. But the timid tone of the Canadian central bank has doused the fire. The long term outlook by the bank encouraged the investors to flee currency market and dive deeper into the bonds again.
As usual the lenders and the banks are slow to respond. Their special unadvertised rates have gone lower but the posted mortgage rate remains the same till to date.
If you walk into a branch then possibilities are that you shall get a good rate if you are a bargain hunter and aware of the rates offered by the on-line rate sites.
If you are like millions of other Canadians – who do not care to rate shop then chances are that you shall be contributing heavily to the banks profit.
The bond yields are low and the long-term outlook of short-term rate is even lower – you should reward yourself a great mortgage interest rate – just by shopping a bit more.