# Mortgage rates



## sagsal (Apr 7, 2009)

So bond yields continue to plummet - would love to hear thoughts from the experts on how low they think rates will go and when the banks are going to start announcing

Thanks


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## crazyjackcsa (Aug 8, 2010)

They won't, the banks will just pocket the increasing spread.


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## Jungle (Feb 17, 2010)

Sure? Industrial alliance is offering 2.84 % on 5 year fixed. That is insane. 
Also our rate hold from Scotia went from 3.29% to 3.09%, 5 year fixed. The is too much competition for banks not to lower rate. All it takes is one lender to lower rates and others lose market share by not following.


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## sagsal (Apr 7, 2009)

That is insane! Did you get that through a broker

I have a 10 year 3.79 on hold till september but if I could get a 5 year well below 3 I would take it in a second


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## Jungle (Feb 17, 2010)

Well bond yields died again today, if this keeps up we should see sub 2.99% from big 5 again. But they won't be putting ads in news papers for this, Jim Fatherly got mad when BMO did this last time. Apparently Canadians don't need encouragement for more cheap debt.


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## GeniusBoy27 (Jun 11, 2010)

Jungle -- where did you get the 2.84% on the 5 year-fixed?


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## The Happy Wanderer (May 7, 2009)

Interest rates won't go any lower, and in some cases like the USA they can't go any lower. Just a few months ago the interest rate on my line of credit jumped from 5.75% to 8.5%. Luckily I no longer carry a balance. Banks aren't in the business to help the consumer save money. 

Interest rates have only one direction they can go, and that is up. If you consider interest rates tend to go in cycles. We have been in a down cycle for interest rates for many years. The Feds are going to have to start raising interest rates sooner or later to stave off inflation. But the global economies are still in a very fragile state and to raise interest rates too fast too soon will only inhibit growth. It is a tough balancing act. 

In the short term, interest rates will stay where they are. By end of next year I expect to see them increase.


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## Jungle (Feb 17, 2010)

Sorry for the late reply, the rate mentioned above was posted on RFD mortgage rates thread, from a broker that I have spoken to before. If you are interested, I can try and find the thread and you can pm him. I believe it was with Industrial Alliance. Probably a no-frills mortgage, but crazy cheap 2.84% five years. That's cheaper than historical inflation, lol


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## Jungle (Feb 17, 2010)

http://forums.redflagdeals.com/official-mortgage-rates-thread-351105/414/#post14809133

There it is.. but I doubt it's still around, that was posted May 28. I posted it above on May 31. Now bond yields have come up again in the last three days, it might be gone now.


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## sharbit (Apr 26, 2012)

5yr note at 1.28%, with the overnight rate at 1%, that's absolutely amazing.


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