Bond rates continue to rise leading to mortgage rate increases from all lenders and major banks in Canada. The big 5, RBC, TD, BMO, CIBC, and Scotiabank all announced increases pushing the 5 year fixed rate to 3.59% to 3.69%. The best discounted 5 year fixed currently on the market is 3.19% up 40 basis points from the low of 2.79% only a few weeks ago. Most lenders are offering 5 year fixed rates in the range of 3.39% to 3.49%.
Its not all bad news, these are still really good rates! In 2008, the average mortgage rate for a conventional five year mortgage in Canada was 7%. Since the crash in 2008, we have been a bit spoiled with artificially low mortgage rates. A five year closed rate of 3.69 per cent is still low, historically speaking.
Rising mortgage rates are a signal of a stabilizing economy in North America, which we have all been waiting and hoping for since 2008. A stronger economy means increases in employment and incomes. These are good things for our country that should help all Canadian families offset the effect of increased mortgage rates.
