<<< back to article list

Toronto Mortgage Interest Rates March 22, 2010


Blog by Tridac Mortgage | March 23rd, 2010


Your Toronto mortgage interest rates for the week of March 22, 2010. 

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.