the 5 year mortgage rate has now slipped below the 4% mark again ... a result of the bond yield spread exceeding the comfort zone.

3 Year Fixed 3.64%

4 Year Fixed 3.74%

5 Year Fixed 3.99%

 3 Year Variable Prime - .85%

5 Year Variable Prime - .80%

 Lenders Prime Rate: 3.00%

Upcoming Bank of Canada meeting’s scheduled for: May 31, July 19, September 7, October 25, December 6

 The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. 1.40 and 1.60.

Why are spreads so great? With new International Financial Reporting Standards (IFRS) coming into effect, these standards will make all Financial Institutions include securitized assets on their balance sheet when calculating capital ratios (meaning they need to keep more money set aside, which is more expensive for them), and these costs ultimately make their way down to the consumer.  Fixed rates have somewhat been accounting for this already, which is why you’ve seen rates where they are with spreads where they are. And now we are also seeing the effect on variable rates as well.

 Great New Product:

Now that the Bank of Canada has increased the minimum down payment for rental properties we have Trust companies, that follow their own set of lending guidelines, coming out with specialty products that will allow clients to purchase with less down.  If you have a client that has less than 20% down payment we can still find them financing for an investment property with attractive rates.


  • ·         15% down payment (gifted or saved)
  • ·         Maximum 35 year amortization

If you have a client that is interested in getting pre-approved pass on this information and have them call me today to get locked in for 120 days (September 6, 2011) with the lender guaranteed lowest contract rate.


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Hans Taal

Hans Taal

Sales Representative
CENTURY 21 Miller Real Estate Ltd., Brokerage*
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