Hi All,

Here is a mortgage update from my mortgage partners,

The fixed rate increase imminent.  As a result in the increase in bond yield the lenders spread has reduced beyond the lower level of the spread forcing fixed interest rates to increase.
While the majority of the banks will increase tomorrow we do still have 3.74% 5 year fixed closed for the time being; it will not last.

·      Canadian 5 yr bond yields markets +.09 to 2.58. The spread (based on  the 5 yr rate published rate of 3.79%)  has fallen out of  the comfort zone at 1.21
The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Currently lenders have adjusted the spread they are looking for to be between 1.40 and 1.65

Upcoming Bank of Canada meeting’s scheduled for 2011: January 18, March 1 and April 12

Your Mortgage Team

Tom and Mandy Szucs

Mandy Szucs, AMP | Mortgage Broker
(FSCO Lic M08002843)

Real Mortgage Associates (FSCO Lic 10464)
‘(905) 469-0766 | 6(905) 469-2701 | MandySzucs@RMABroker.ca
www.OakvilleMortgageTeam.com

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Filed under: Mortgage Rates • Real Estate News

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