Fixed mortgage rates could get a slight discount in the coming days after the Canada five-year bond yield fell to its lowest level since November this week.
Mortgage lenders set their long-term fixed rate mortgage rates based on the performance of the Canada five-year bond. Its yield has dropped by roughly 20 basis points in recent weeks to the 2.7-per-cent range.
“The recent pullback in bond yields appears tied to softer inflation readings and growing expectations that interest rates could ease later this year if economic conditions continue to cool,” said Dustin Vyner, a mortgage broker with DV Capital Corp.
On Tuesday, Statistics Canada reported that the annual rate of inflation slowed to 2.3 per cent in January. Economists had projected the Consumer Price Index would remain at December’s reading of 2.4 per cent.
Mr. Vyner said he expects lenders could begin lowering rates slightly in the coming weeks or days. As of Thursday afternoon, Ratehub.ca showed the lowest three- and five-year fixed mortgages held steady at the mid-3-per-cent level.
What do you want to know about mortgages?
Do you have a mortgage question for our expert? Is a variable or fixed rate the best option? Does it make financial sense to refinance? Is it better to consult your bank or go to a mortgage broker?
Submit your questions below and Ratehub's Penelope Graham could answer it in an upcoming column.
Mortgage rates are sourced by Ratehub.ca. For a comprehensive list of today’s mortgage rates for each term/type, visit ratehub.ca/best-mortgage-rates.
Ratehub.ca is a mortgage-rate comparison marketplace and mortgage brokerage. It helps millions of Canadians compare and obtain the best mortgage rates, credit cards, insurance, deposits and loan products.
Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Feb. 19.
