Fixed Rate Mortgages

Author: Rich Ulvild |

Blog by Leanne deSouza Personal Real Estate Corp.

As a mortgage broker, I get asked by clients all the time on what is going to happen with mortgage rates. Are they going to go up, down, or stay the same? Before I answer that question, I ask a question of my own...Which rates are you asking me about? Fixed rate mortgages or variable rate mortgages?

I rarely get a definitive answer such as Fixed. Or Variable. Sometimes I am even met with a blank stare. Which leads to my point. All mortgage rates are not created equally. When most refer to the increase of interest rates this past year and a half, they assume it is for all mortgage rates. That is simply not true. The increase by the Bank of Canada on the "Overnight Rate" affects variable rate mortgages only. It has very little, if any, impact on Fixed Rate mortgages. The rate for fixed rate mortgages is determined by bond yields. Not the Bank of Canada (or any other Central Bank).

Fixed rate mortgages on the other hand can change daily as they follow bond yields which vary from day to day. They don't usually mirror the change each day as that would be an administrative nightmare for the lenders but..if they see a trend over a period of days, then they will raise or lower rates accordingly.

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The scheduled dates for the interest rate announcements for 2024 are as follows:

  • Wednesday, January 24*
  • Wednesday, March 6.
  • Wednesday, April 10*
  • Wednesday, June 5.
  • Wednesday, July 24*
  • Wednesday, September 4.
  • Wednesday, October 23*
  • Wednesday, December 11.

Original Article credits:
Author: Rich Ulvild
Contact information for mortgage needs : 604-803-1456