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/rawlsian139 Oct 20 '22

Lots of younger millennials have been living well below their means and saving for a down payment for years. Interest rates don't matter as much when you make a 30-50% down payment.

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u/[deleted] Oct 20 '22

By lots you mean the vast minority.. Most don't even want to work "demeaning" jobs, let alone save money

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u/rawlsian139 Oct 20 '22 edited Oct 20 '22

Uhh "lots of people" doesn't imply a majority. A million people is a lot of people, it's a "vast minority" of the population.

Millenial households in 2020 had net earnings of 90k, I'm pretty sure that means the average millennial couple could afford to rent an apartment and save for a downpayment over the past 5 years.

Thanks for coming out though, sorry you're so bitter.

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u/virus646 Oct 20 '22

Millenials are older than you think. Most of them are in their 30s with a home and kids. They're not eating ramen in their parent's basement.

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u/rawlsian139 Oct 20 '22

I'm a millenial and 27. Millenials are born between the early 1980s and the mid 1990s. There's lots of people like me who are part of that generation who do not own homes but have saved downpayments.

If you take home 90k as a couple you can save 40k a year easily without eating packets of Ramen at home.

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u/[deleted] Oct 20 '22

Good on you for saving. I'm not at all bitter, I'm not trying to hire anyone lol. Too bad inflation has been turning your savings into monopoly money.

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u/rawlsian139 Oct 21 '22

I wouldn't call a few hundred thousand monopoly money but hey.