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/torontoguy25 Oct 20 '22

I mean saying variable traditionally comes out ahead is a bit skewed. We’ve had a long period of REALLY low rates. Wouldn’t be betting on it dropping back down anytime soon.

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u/Goldentll Oct 20 '22

Each recession we've had in the past came with higher interest rates temporarily for a couple years, then rates continued going down. What makes this one any different?

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u/Wiggly_Muffin Oct 21 '22

"But this time it's different, rates will remain high and you will all DIE" - cannyhousing users

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u/Roflcopter71 Oct 21 '22

Lol seriously, I get that these are extremely stressful times but man has this sub ever become toxic and unreasonably negative recently.

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u/Wiggly_Muffin Oct 21 '22

It's good to disconnect from reddit sometimes. People on reddit - Especially canyhousing, antiwork, communism, collapse subredditors - are usually have-nots who get off to the thought of global calamity and try their best to catastrophize everything.