Fixed Mortgage Rates On The Rise
Fixed Mortgage Rates On The Rise
Now is a good time to see how Bank’s prime rate (i.e. variable mortgage rate) and fixed mortgage rates are not linked to one another. Prime has remained at its current level for several months now and will likely remain unchanged later this month at the next meeting of the Bank of Canada. Variable rate mortgage pricing, as mentioned in previous posts has also been improving over time, however, fixed mortgage rates are experiencing a slight increase today/tonight by most banks.
I do not think this should be a major concern for most as a slight increase from record low rates will still result in rates being extremely good; still well below the 5% mark.
Variable mortgage rates (i.e. Bank’s prime rate) are linked to the target for the overnight rate from the Bank of Canada. This is in contrast to fixed rates that are linked to bond yields. Both of these are influenced and adjusted due to different factors which are not always moving in the same direction or at the same time, explaining why movement is not coordinated between the two.
For more information on rates, to know what kind of mortgage and type of rate is best suited to for you, please contact me at any time.
(604) 603-2520 | Maury@MauryLum.com | www.MauryLum.com |
