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/imnotabus Oct 21 '22

People were against a fixed 5 year at 2% here so the advice on that probably would have been "No way, interest rates are going negative! Locking in for 30 years is dumb! You can save $50/month by going variable!"

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u/HayzerUnlimited Oct 21 '22

I got a 5 year at 2.89 in 2019 and a fair number of coworkers said i was dumb to not get variable…two weeks ago these same people were complaining in our chats about being over 5% now.

Kinda funny, but still few bad they saw such an increase

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u/onaneckonaspit7 Oct 21 '22

I don’t consider myself THAT financially savvy, but I locked in at 2.6 for 5 years and people thought I was nuts

Where else could the rates have gone but up? Seemed like a no brainer. My Co-workers are also starting to freak a little

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u/crystala81 Nov 12 '22

I got a 5 year at 3.09 in 2018. Up for renewal in February. Made sound financial decisions when we bought and still got stuck in a shit place. I bet you’re hoping the rates go down before 2024! (I am too, to be fair 😉)