Interest Rate Update - October 13 2015

Dave Larock in Interest Rate UpdateMortgages and Finances

Editor's Note: The Interest Rate Update appears weekly on this blog - check back every Mon morning (Tues on holidays) for analysis that is always ahead of the pack.

Mortgage Update Pic

I hope you had a relaxing Thanksgiving weekend. We couldn’t have asked for better weather in the GTA!

Five-year Government of Canada bond yields rose seven basis points last week, closing at 0.87% on Friday. Several lenders have recently raised their five-year fixed rates, but you can still find them in the 2.49% to 2.59% range. Five-year fixed-rate pre-approvals remain at rates as low as 2.64%.

Five-year variable-rate mortgages are available in the prime minus 0.65% to prime minus 0.75% range, depending on the size of your mortgage and the terms and conditions that are important to you. That said, most lenders have lowered their discounts on variable-rate mortgages to prime minus 0.50%, so I don’t expect these more deeply discounted variable rates to be around for much longer.

The Bottom Line: I expect bond yields to remain volatile this week and as such, anyone who may be in the market for a fixed-rate mortgage is well advised to lock in a pre-approval to safeguard against any short-term rate spikes. Forewarned is forearmed.

David Larock is an independent mortgage planner and industry insider specializing in helping clients purchase, refinance or renew their mortgages. David's posts appear weekly on this blog, Move Smartly, and on his own blog: Email Dave

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