3-year fixed rates drop despite bond yields’ continuing rise

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Millicent Wong
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The mortgage market watched nervously this week as bond yields rose again. U.S. President-elect Donald Trump's policies could potentially be like throwing gasoline on the inflation grill, and Wall Street is starting to sweat.

That's a risk for fixed mortgage rates, even in Canada, depending on U.S. trade policy. But fortunately, in some cases, mortgage rates have actually fallen. This also includes the most popular term of the day, the three-year fixed term.

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The nation's leading three-year fixed interest rate fell by 15 basis points to 4.09 percent for default-insured borrowers. However, call around because you may find a high-volume broker or banker willing to sell for even less – around 3.99.

For uninsured mortgages, three-year interest rates are much higher – at least the ones the banks want to show you. The advertised three-year terms are 4.64 percent. But don't let that fool you. Bankers and top brokers are snagging discretionary interest rates in the low fours. Unfortunately, no one wants to advertise it and cause competitors to undercut their prices.

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  2. Donald Trump's Republican Party could gain control of all branches of the U.S. government and have free rein to increase spending, cut regulations, deport cheap workers and impose tariffs. The markets fear that this will all be inflationary.

    Excessive growth could cost Canadians seeking mortgage relief dearly

On the variable side, Alterna Bank advertises an interest rate of 5.05 percent. For high-interest mortgages (with a down payment of less than 20 percent), you can get an even lower rate from Pine Mortgage: 4.75. Expect these rates to fall another 25 to 50 basis points on December 11, when the Bank of Canada cuts for the fifth time this cycle.

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.

Mortgage interest rates

The interest rates shown below are updated at the end of each day and come from MortgageLogic.news' Canadian Mortgage Rate Survey. Postmedia and imagination. Online Inc., parent company of MortgageLogic.news, will be compensated by certain mortgage providers if you click on their links in the charts.

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