Article content
After moving sideways for a few weeks, Treasury yields – the factors that lenders use to benchmark their fixed-rate mortgage rates – are creeping up. However, there is no immediate threat of a recovery in fixed rates as profit margins for most lenders are still good.
Compared to last week, nationally advertised fixed interest rates for default insurance fell by an additional one and five basis points for four and five years, respectively. However, the lowest insured variable rate moved in the wrong direction, rising five basis points to 5.20 percent.
Article content
In the uninsured market there was a calm mood in the rankings on Monday. There was only a movement in the 4-year fixed interest rate, which fell by one basis point week-on-week.
We are now 21 days away from the Bank of Canada's next likely rate cut — a 25 base pointer if the bond market is right. The more they cut, the more people will be interested in variable rate loans.
Recommended by Editorial
-
The best mortgage rates in Canada today
-
Because profit margins are higher, lenders are more inclined to pass on savings
Currently, the gap between leading five-year fixed and variable offerings is 106 to 126 basis points, depending on whether the mortgage is uninsured or insured. That gap is still too big for most people, who would prefer to keep their plans like their relationships: stable and predictable.
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
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.
Share this article on your social network