Rate Cut? What Does This Mean for Me?

Rate Cut? What Does This Mean for Me?

The Bank of Canada has shocked the market by cutting the overnight rate by 25bps to 0.75%. This puts the prime lending rate in Canada down to 2.75%. The BofC commented the rate cut was due to the economic threat of the drop in oil prices. What this means to you: For...
Bond Yields Break Record!

Bond Yields Break Record!

Last Thursday, those of us keeping an eye on the 5 year Canadian bond yield watched it break the all-time low, falling all the way down to 1.01%. This is a big fall in a rather short period of time given back in September of 2014 the 5 year bond yield in Canada was...
Bond Yields → Mortgage Rates

Bond Yields → Mortgage Rates

How Bond Yields Affect Fixed Mortgage Rates There are several factors that impact fixed mortgage rates in Canada. The single biggest factor is bond yields. Bond yields have an inverse relationship to Bond prices. In the recent years with the economic conditions the...