As the Government of Canada bond rates spike upward mortgage rates are following suit. Since May 1st when the 5 year bond yield was as low as 1.15%, rates have risen to 1.85% in less than 8 short weeks. This drastic increase in rates has pushed the 5 year fixed mortgage rates from their all time lows at 2.79% as the best discounted rate offered by many major lenders to 3.29% – 3.49% with most major lenders today. How does this affect your payments? Take a look…
On a $300,000 mortgage amortized over 25 years, a rate increase of .50% is equal to an increased payment of approximately $77/mth, $925.68/year, or $4,628/over the 5 year term! This increase will make a significant difference for those looking to qualify for a new mortgage today.
Learn more here by reading the government of Canada 5 year bond yield report.
