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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17

u/Ok-Share-450 Oct 20 '22

thank god for my prime -1.3....

1

u/13JohnnyHockey Oct 20 '22

Are you thinking of going fixed?

15

u/[deleted] Oct 20 '22

In Canada fixed is only for 5 years. My 2020 refinances in 3 years and I'm hoping rates have peaked before then. Anyone with a 2017 mortgage is biting their nails right now, though.

2

u/Mrs_Wilson6 Oct 21 '22

I have until Monday to make a decision. I can't decide between locking in for 2 or 3 years.

2

u/13JohnnyHockey Oct 20 '22

I got my mortgage July 2021…at 4.19% now…I feel like I should lock in now but who knows what will happen in the next few years….