# 5 year fixed rates



## sagsal (Apr 7, 2009)

Any thoughts on whether these will go up soon?

Thanks


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## steve_jay33 (Aug 29, 2009)

Its the lowest it has been in 58 years. http://www.bankofcanada.ca/pdf/annual_page57_page58.pdf

Look at the Dec rate.
Still your guess is as good as min


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## ssimps (Dec 8, 2009)

As someone who has none, I hope so; it would help slow down the crazy increase in house prices; bubble bubble away.


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## Berubeland (Sep 6, 2009)

The government has said they will not raise rates. They will raise requirements instead. So either higher down payments or higher income/mortgage ratio.


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## HaroldCrump (Jun 10, 2009)

The reason govt. is not raising rates is because it'll strengthen the Canadian $.
Until the US Fed raises rates too, they don't wanna raise rates.
They also realize that the Canadian RE market is in bubble territory and raising rates is the only way to control it.
So they are talking about increasing minimum down payments, etc.


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## Rickson9 (Apr 9, 2009)

sagsal said:


> Any thoughts on whether these will go up soon?


Nobody knows.



sagsal said:


> Thanks


No problem.


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## dogcom (May 23, 2009)

Watch the long bond market and if people feel inflation is a threat down the line they will demand more compensation for the bonds they purchase. The central bank cannot ignore the bond market for long if it starts to get out of hand.


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## HaroldCrump (Jun 10, 2009)

dogcom said:


> Watch the long bond market and if people feel inflation is a threat down the line they will demand more compensation for the bonds they purchase. The central bank cannot ignore the bond market for long if it starts to get out of hand.


Long bond yields don't seem to be factoring in large scale inflation.
The 10 year Canadas benchmark is yielding 3.6% and the Canadas 15 year is yielding 4.04%, and finally the Canadas 2033 is yielding 4.15% (source: CanadianFixedIncome.ca).
To me that doesn't look like high inflation is being expected.
What do you think?


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## dogcom (May 23, 2009)

At the moment I also do not see high inflation haroldcrump as the bond market is telling us. If however the economy looks to be picking up and the future looks bright then probably all bonds will yields will head up as the economy is seen as heating up. 

Of course the BOC will then move to raise rates and mortgage rates will head higher.


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## Shayne (Apr 3, 2009)

Almost a month has gone by and fixed rates are lower. The spread from prime on variable rate mortgages has also increased.


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