Wow mortgage rates continue to defy all the predictions from all the experts that have been saying for years now that rates are on the way up. I scan the headlines on the National Post website every morning and I have seen scary predictions for the last 5 years about how rates were going to rise and people were going to get caught off guard when their mortgage terms were up. It appears that rates are going nowhere but down at least for now and the lowest rate you can get from a mortgage broker as of today is 3.04% for a 5 year fixed rate.  Check out this article that explains how fixed rate mortgages are set and how they are tied to the bond market. Variable rate mortgages are tied to the Bank of Canada prime rate so they are holding steady as the Bank has not given us any indication that they will raise rates any time soon.

So, while I think we don’t have to worry about fixed rates going over 4% over the next couple of years, I do think that people need to be prepared for when that day inevitably comes. You need to ask yourself if you could afford your mortgage if it was at 5% instead of 3.5%. If not, you should take steps to make sure you can.

For now, enjoy these great rates

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