The Bank of Canada held their overnight interest rate steady today, but that’s not how the market reacted.
The 5-year bond yield has been climbed 0.13% today, and 0.24% over the last 2-weeks.
Fixed mortgage rates are expected to increase as early as Friday, May 1st.
Why is this happening?
According to National Bank’s analysts, “it’s all stemming from inflation-related anxiety. Lately, economic data has been extremely disappointing and were it not for the war, we’d expect that investors would have been ramping up rate cut bets.”
This is important if:
- You (or your clients) plan on Purchasing a home in the Summer.
- You have a mortgage renewing this year.
- You (or your clients) plan on refinancing a property this year.
Strategies – Renewing
If you have a renewal taking place in 2026, reach out to your lender and ask for their early renewal rate. Many lenders offer an early renewal rate, up to 6-months in advance.
Alternatively, secure an interest rate through my services with another lender for 120-days. If rates show no signs of improving by September, then you can decide if it makes sense to break your mortgage early and pay the reduced penalty. It costs nothing to secure an interest rate, and this way you’ll have options!
Strategies – Refinancing
If you plan on refinancing your mortgage, secure today’s interest rate. You can hold the rate for the next 120-days. Should you decide not to proceed then the rate hold will simply expire and it hasn’t cost you anything.
Strategies – Purchasing
If you’re on the fence about purchasing a home this year, secure today’s interest rate. This will likely be the lowest interest rate you will have access to this summer.
How to Protect Yourself?
When rates are rising the best tool you have at your disposal is securing an interest rate for 120 days. A mortgage application is required, and often takes less than 15 minutes to complete.
Securing an interest rate is FREE, and it could save you thousands in unnecessary interest. If you decide to not move forward with your plans, or if rates miraculously decrease, then the rate on hold simply expires.
To protect yourself from rising rates book a Discovery Call with Adam Sale using the link below.👇