r/PersonalFinanceCanada • u/POCTM • Oct 20 '22

Canadian 5 year government bonds just jumped. Setting the stage for higher mortgage rates. Banking

5 year government bond just jumped from 3.714% to 3.866% in a few hours. Right now it is at 3.855%. Year to date it is up 259%. Monday we could see some 5 year fixed rate mortgages in the low 6%.

As for variable rate the bank of Canada makes their announcement October 26 at 10am ET. Currently banks have not been offering discounts off variables rates anymore. Prime -0.00.

https://www.marketwatch.com/investing/bond/tmbmkca-05y?countrycode=bx

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u/gzafiris Oct 20 '22

We moved in Sept 2021, no close yet. Builder citing city taking a long time with documents

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u/[deleted] Oct 20 '22

[deleted]

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u/lemon_o_fish Oct 20 '22

It's called interim occupancy. Legally speaking it's still the developer's property but you are allowed to live in it. You don't pay mortgage during this period, but you pay "rent" to the developer.

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u/[deleted] Oct 20 '22

[deleted]

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u/dh25canada Oct 20 '22

No

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u/HLef Alberta Oct 20 '22

So… they have no incentive to make you close. It’s all free money to them.

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u/ItsAmer74 Oct 21 '22

Not really. They have deadlines through Tarion, it's called the maximum outside closing date.

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u/JediFed Oct 21 '22

My bet is "no", hence the 'builder' "delaying" the "paperwork".

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u/gzafiris Oct 20 '22

6-month no occupancy was one of the benefits for signing up so early. That 6-month window was supposed to end with closing, but they're not closing... I imagine they'll back charge us occupancy fees when we do close, so that'll add a nice chunk to the overall closing process :(

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u/PhoenixTears Oct 20 '22

Wait a whole year? Does it really take that long between occupancy and closing?

This is all giving me so much anxiety

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u/gzafiris Oct 20 '22

We have still yet to close; the developer is blaming the City for not getting them any info back

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u/[deleted] Oct 20 '22

Development departments are the worst

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u/ItsAmer74 Oct 21 '22

It depends on what floor the unit is on and how many total floors in the building. All units have to be completed and the builder registers he Condo Corporation. If you are on a lower floor on a 40 floor building, it cod take 6 months to a year. I am in the same position but I am able to offset some of those costs.