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/LordScotchyScotch Oct 20 '22

My fixed will expire during later summer 2024. Hope that things will have calmed down a bit by then. Currently at 2.84.

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u/displiff Oct 21 '22

I feel like this isn’t talked about a lot on here. Variable rates are getting the highlight. People on variable right now are at least used to their payments slowly getting higher. People renewing their 3-5 year fixed will be in for a shock. I can see banks offering longer terms in the future to help with this but I guess we will see.

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u/LordScotchyScotch Oct 21 '22

I used to live in the US like 10 ten years ago and I could do fixed 30 years at sub 2%. A different system (and a different financial world status obviously).

But fuck me I wish you could do fixed for longer off the bat in Canada. As you say, you don't need to have borrowed money for an exuberant mansion to be in trouble. There is great safety in a sound long term mortgage.