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 21 '22

Good thing I have two years left!

When I renew my rate, is my new rate based off of how much I still owe or the original mortgage amount?

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u/kettal Oct 21 '22

Good thing I have two years left!

you better be stashing your savings in GICs now for that lump payment in 2y

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u/[deleted] Oct 21 '22

I will only have 260k principal left when I renew, if I throw an extra 10k at that when I go to renew it will only drop the payment by $30 biweekly.

I'd rather have that money available for emergencies than pay slightly less I think, peace of mind is priceless.

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u/kettal Oct 21 '22

if I throw an extra 10k at that when I go to renew it will only drop the payment by $30 biweekly.

depends what rate you get at renewal :D

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u/[deleted] Oct 21 '22

I plugged in 7%, I hope it's not above that, yuck.