Could it really happen? An increase in mortgage rates? Apparently two small lenders have increased their fixed mortgage interest rates, with another large player warning that a potential increase is in sight.
It's important to note that these are the fixed-term mortgage rates we're talking about (not the prime rate or VRM lending rates). These are the rates that your 5 year fixed term mortgage and similar fixed terms are based on. The interest rates on these types of mortgages are set on the Government of Canada bond yields. These yields have jumped up 20 basis points over the last few days and a lot of folks believe this will affect the mortgage rates and we'll see an increase.
Please contact us if you would like us to refer you to a mortgage broker to hold interest rates up to 120 days while you're shopping or thinking of refinancing your property. We would be happy to help you or answer any questions.