Canadian job growth surged past expectations in January, with the economy officially recouping all the jobs lost in the recession, underscoring that its recovery is on track even as the U.S. labor market struggles.
Statistics Canada data on Friday showed the economy added 69,200 new positions, far more than the 15,000 markets had expected. This has driven 5-year yields to a new 8-month high. Banks have been quick to follow the spike in the bond yields with a hike in their fixed rates by approximately 25 bps. The short term rates have remained unchanged - with the prime at 3.00%. The qualifying / benchmark rate of Bank of Canada for insured variable rate mortgages is unchanged at 5.19% , but the same is likely to move upwards with the increase in the 5 year posted rates of major banks.
The rates are still historically low & it is still a good time to buy a home or refinance your mortgage to consolidate your debts in a one low monthly payment.