Tag Archive: fixed or variable


Many are Prepared to Take Chances with Rate Fluctuations

At the time this is being written (10:45 p.m. ET March 29), the top five most popular rates on our site are floating rates. It’s the first time we’ve seen this in weeks. And those numbers are based on tens of thousands of visitor clicks. Given that fixed rates usually dominate, what does this suggest? Well, among other things, it...

5-year Fixed Rates Climb to 5-month High

Canada’s best 5-year fixed rates are now north of 1.50% — for the first time since September. The lowest 5-year fixed rate in the nation is at 1.59% (for high-ratio mortgages in Ontario only). This rate may disappear this week, given it is priced aggressively under the market considering lender funding costs. On the uninsured side, HSBC’s fixed-rate hikes on...

Fixed Mortgage Rates, Highest Since August

Fixed mortgage rates look like a runaway train. Thanks to Friday’s epic jobs report, the 5-year government bond yield, a leading indicator of fixed rates, closed the week above 1.00% for the first time in a year. That coincided with a barrage of new fixed-rate hikes at the big banks. Most major banks internally elevated their fixed rates this week...

Fixed Rate Alert

The entire mortgage market was waiting, and now, after 10 months, it finally happened. Canada’s 5-year bond yield (which influences fixed mortgage rates) broke through major resistance, resistance that goes all the way back to April of last year. It’s a signal that better economic times lie ahead. A sign that inflation should no longer be just an afterthought. A...

One More Dip in Rates?

“Vaccines have come too late to avoid a bleak winter,” said Capital Economics in a report last week. The market agrees. Canada’s two-year bond yield, often used to forecast Bank of Canada rate policy, hit a record low on Thursday. That coincides with recent BoC comments that it could cut the overnight rate by less than the standard 25 basis...

Don’t Time Mortgage Rates. How to Time Mortgage Rates

Lest you think too many mimosas at Sunday brunch impacted our headline choices today, fear not. As long-time readers can attest, we don’t hype interest rate timing around here. Guessing rate direction beyond the short term can be like guessing solar flare intensity. It ain’t easy. Professional economists with big fat salaries botch rate predictions for a living. Yet, many...

Fixed Wins Enough of the Time

The debate over fixed or variable rates never ends. But there are now two things that are far less debatable: 1) The Bank of Canada is telling us that prime rate has likely hit bottom, and 2) “Safer” 5-year fixed rates are now as low as “riskier” variable rates. (Safer, particularly if you choose a fair penalty lender.) Given the...

Rates Get Closer to Zero

—The Mortgage Report: Aug. 4— Historic 5-year Yield: On Tuesday the U.S. 5-year Treasury traded just 19 basis points above zero—where it’s never been before. If it drops a smidgen lower, that could be enough to drag Canada’s 5-year yield (and hence, 5-year fixed mortgage rates) to record lows as well. Stay tuned. Setting the Pace: Tangerine now has the...

Variable-rate Advantage All But Gone

—The Mortgage Report: July 28— A Paper-Thin Spread: The gap between fixed and variable rates is as narrow as it’s been in months. The most competitive mortgage providers now sell 5-year fixed rates for less than 7 basis points above the cheapest variable rates. That “fixed-variable spread” could soon become negative, as it was in early March. Fixed rates are...

It’s Time for a Fixed Rate

—The Happy Canada Day Report: July 1— Fixed or Bust: Canada’s lowest nationally available conventional variable rate is just nine basis points cheaper than a comparable 5-year fixed rate. That minuscule “fixed-variable” spread is now 80% narrower than its 10-year average. In other words, the market is no longer compensating new borrowers for the risk of a floating-rate mortgage. And...