Canadian Fixed Mortgage Rates Rise as Bond Yields Climb
Fixed mortgage rates in Canada have increased by five to 10 basis points for most terms, driven by a rise in the five-year government bond yield. Affinity Credit Union remains the only lender offering an insured five-year fixed rate under four percent.
Fixed mortgage rates across Canada have moved higher this week, with the lowest available rates climbing by five to 10 basis points for most terms. This upward trend follows a similar increase in Canada’s trendsetting five-year government bond yield, which serves as a key benchmark for mortgage pricing.
For borrowers seeking three-year fixed mortgages, insured rates currently range from 4.14 to 4.19 per cent at online discounters such as Ratebuzz and Butler Mortgage. Uninsured three-year fixed rates are slightly higher, ranging from 4.19 to 4.34 per cent at credit unions and discounters.
In the five-year fixed category, Affinity Credit Union in Manitoba stands out as the last lender in the country offering an insured rate under four per cent, specifically at 3.99 per cent. For borrowers in provinces other than Manitoba, insured five-year fixed rates are expected to be at least 15 basis points higher than this benchmark. Competitive uninsured five-year fixed rates are currently near 4.49 per cent, plus or minus 10 basis points.
Variable mortgage rates show more variation depending on the provider and insurance status. Butler Mortgage offers the lowest insured five-year variable rate at 3.25 per cent. National providers typically offer insured five-year variable rates that are five to 15 basis points higher than Butler’s rate. On the uninsured side, Ratebuzz offers a five-year variable rate of 3.45 per cent, while major banks provide uninsured five-year variable rates around 3.55 per cent.
Market analysts suggest that borrowers planning to lock in fixed rates should act immediately, as current trends indicate borrowing costs are likely to continue rising.