• Several weeks ago our Bank of Canada Governor Stephen Poloz indicated in the media how pleased he was with the Canadian economy. For most Canadians this news would just not register.

    At Robert Floris’ Mortgage Architects office in Hamilton Ontario, it certainly made us think. If the Bank of Canada
    thinks the economy is strange, could interest rate increases be far away? Well, the professional money manager
    s in the world think so. They do not wait for the news to happen, the anticipate it. These past several weeks our loony strengthened and our
    bond yields went higher in the anticipation of the eventual news. The big banks with higher costs (higher yields) have increased their mortgage rates.
    Let’s take an example from TD. The rates have increased on the following terms:

    Year Previous Rate New Rate
    3 2.36% 2.49%
    4 2.49% 2.78%
    5 2.69% 2.84%


    The more interesting aspect of higher Canadian mortgage rates is that variable rate or adjustable rate mortgages appear to be on the rise for the first time in seven years. Expect a quarter percent increase in the prime rate.

    Can you imagine you can still lock in for five years under 3%? We are not concerned with the increase with the rise in the lending rate. If you are locked in, it will bring you peace of mind and stability.

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