Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Please don’t let the headline fool you. Variable rate discounts are drying up a bit too. So, when fixed rates are descending then variable rates are running towards an opposite direction.


Bond yields are sinking like a stone in water. Obviously recent share market hiccup forced the investors to take shelter in the bonds.

Five years Canadian benchmark (BoC) bond yield tumbled about 10 basis points (0.1%) in about a week. Therefore the mortgage lenders are taking actions accordingly by realigning the lending rates with the funding cost.

Good for the borrowers:

Spring market is around the corner. If you are planning to close a property in April or May then getting a preapproval is a good idea.

The famous 2.99% has made its way back in the market again. The great Canadian rate is yet to reach the catalogues of big six banks, but hopefully it is only days away.

Good for the housing:

In some recent reports it was mentioned that the house price growth is not levelling out. After adding in real inflation numbers – a 2% price growth will not add any extra value to the asset.

Lower interest rates and super saturated consumer debt will keep inflation at the bay for now. That means low rate scenario has some more miles to go. That will encourage some buyers to try to catch the boat.

So, at least for the time being the demand will stay healthy.

That does not mean that we have avoided a crash.