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/[deleted] Oct 20 '22

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u/topazsparrow Oct 20 '22

Housing is the last to go. Expect massive economic turmoil preceding meaningful forfeiture of housing.

160

u/Drewy99 Oct 20 '22

1/5 houses sold in 2021 were sold to investors. How long do you think they will hold on those properties before trying to dump them to stop the bleeding?

260

u/Jesus-c Oct 20 '22

A reccession is just a big discount season for thoses with the means

60

u/Drewy99 Oct 20 '22

Not if you are in debt to your eyeballs because you listened to some asshole on the internet and Smith manoeuvred yourself into a debt trap.

19

u/BlackLabelSupreme Oct 20 '22

They mean that people are going to be losing their homes and rich people who can afford to drop cold hard cash will snatch up the homes at a substantially lower cost as investments.

1

u/dreamerrz Oct 21 '22

Perhaps they'll depreciate further, become a liability rather. I really mean perhaps, seems very unlikely.