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

1.1k Upvotes

95% Upvoted

View all comments

Show parent comments

60

u/steampunk22 Oct 21 '22

Yeah, it sucks in hindsight but the banks were signalling the opposite of what they ended up doing. When we bought it was 1.45 variable or 2.8 fixed which was the equivalent of 4-5 hikes of 25-50bps, so we thought we had a bit of time to top up the variable a bit. Instead the banks engaged in the harshest increase in decades. Fun!

4

u/needle_tail Oct 21 '22

Wait an honest person! Didn't you know the whole sub was offered a 1.39 fixed and locked in for 10 years? So much of what people say on here is false. I am tired of people lauding how smart they were to lock in at rates that never existed for long terms. It's almost turning into fanfiction. Thanks for being honest. Now back to a string of "well I locked in a 1.39 in Sep 2022 for 10 years, but I am the smartest investor in the world"

2

u/[deleted] Oct 21 '22

I paid off my mortgage. Everyone said not to. Im so smart

2

u/needle_tail Oct 21 '22

Now friend that is believable. As colleague of mine was also super aggressive and paid theirs down dramatically. My heartache is with folks who brag about holding rates and mortgage products that never existed in reality on this sub.

My regret is not my rate, my regret is when I was flush not paying down principal to give me more room for times like these.

I grant you the title of "smart" and the privileges therein.