1 year fixed – 2.55%
3 year fixed – 3.35%
5 year fixed – 3.79%
SPECIAL * 5 year fixed – 3.69% (must close by April 26th 2010, purchase & refinance only)
3 year variable – Prime-.50% (1.75% effective rate)
5 year variable – Prime-.40% (1.85% effective rate)
Note: Rates are subject to change without warning at the lender’s discretion.
Toronto Mortgage Rate Summary
Fixed mortgage rates are married to bond yields. To help advise clients, I constantly look towards the 5 year Government of Canada bond yield to forecast where rates are headed. Bond yields and fixed rate mortgages have a positive relationship. Put another way, when the yield on 5 year Canadian Bonds increases, the mortgage interest rate for a fixed 5 year mortgage also increases.
Over the past 3 weeks we have observed an interesting trend. The bond yield has increased from 2.52% to 2.82%, an increase of +0.30% and yet lenders are not budging on their historically low interest rate offerings. If past trends are anything to go by a rate increase is just around the corner.
Christopher Molder, your Toronto mortgage broker.