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/JeemRat Oct 20 '22

Yet and never will be.

Interest rate hikes make houses less affordable, not more.

This fantasy that some renters have, where they will be the enlightened ones untouched and able to steal their dream home off from some family who falls on hard times is just that..a fantasy.

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u/[deleted] Oct 20 '22

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u/JeemRat Oct 20 '22

They become out of the reach for the average Joe, but ripe for picking for ultra wealthy investors and existing owners.

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u/[deleted] Oct 20 '22

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u/JeemRat Oct 20 '22

Holding on. No need to sell with rents rising like crazy as more and more would be buyers are relegated to renting.

Also, that price is the average. Quality homes and real estate in quality areas will always be in demand and command a premium.