How the Brexit Affects Canadian Mortgage Rates
June 27, 2016Why I Found Last Week’s Change To The Mortgage Qualifying-Rate Puzzling
July 11, 2016
I hope that my Canadian readers enjoyed a relaxing Canada Day long weekend, and I wish a happy Fourth of July celebration to our southern neighbours.
Today’s post will be short and sweet. Here is a five-second video which summarizes how the Brexit has progressed since last week. (Videos, like pictures, can be worth a thousand words!)
Five-year GoC bond yields fell six basis points last week, closing at 0.57% on Friday. Five-year fixed-rate mortgages are available in the 2.39% to 2.49% range, depending on the terms and conditions that are important to you, and five-year fixed-rate pre-approvals are offered at about 2.54%.
Five-year variable-rate mortgages are available in the prime minus 0.40% to prime minus 0.50% range, which translates into rates of 2.20% to 2.30% using today’s prime rate of 2.70%.
The Bottom Line: Investors continued to worry more about the return of their capital than they did about the return on their capital last week, and our mortgage rates should remain at or below today’s ultra-low levels for as long as fear and uncertainty are the market’s dominant themes.