Canadian mortgage rates are falling as bond yields slide lower
What's bad news for some is good news for others, and Canadian mortgage-holders are the unexpected beneficiaries of some of the gloom that's hovering over Canada's economy.
Fixed mortgage rates have been falling precipitously in recent weeks, as the cost of financing those loans has gotten cheaper. Banks and other lenders get the money that they loan out in mortgages by borrowing it themselves on the bond market, and the yields on five-year bonds have been falling since May 2018.
A five-year Government of Canada bond was yielding just 1.45 per cent on Monday. That's the first time the figure has been below 1.5 per cent since the summer of 2017.