 Fixed rates going up...again!Surrey, BC - June 9, 2009 - The Bond market is taking a beating and Bond yields are continuing upwards and with them fixed rates. We just had an increase to the 4.00-4.09% range for a 5 year discounted rate, now TD Bank has raised their rate to 4.49% effective tomorrow. We have to wait and see if this is matched by the other banks/lenders. The Bank of Canada met last Thursday and left Prime alone (2.25%).
TD Bank is looking to maximize it's profits by scaring people to lock in their variable rate mortgages and other lenders may follow their lead. We expect this bump to be short lived, but as with anything, only time will tell the true end result.
Variable rate mortgage products continue to make the most sense even in this environment, and we are seeing some more competition amongst lenders, with most at Prime + .60% (2.85%) now, and one at Prime + .40% (2.65%). If you are in a variable currently, our advice is to stay in it, as long as you are not stressed out!
As always, having a Mortgage Strategy in place is always the best plan!
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