As expected the Bank of Canada cut rates for the third meeting in a row earlier this week, knocking the overnight rate down to 4.25%, resulting in a prime lending rate of 6.45%. The move from the BOC was widely expected and the markets had it priced in as a 99% certainty, so there wasn’t much movement in the bond yields as a result. That being said, we are continuing to see the bond yields fall, as of today Sept 5th hitting 2.83%, the lowest reading since March of 2023. This leaves room for some more downwards adjustments in fixed rates products which I will feel will be coming in the coming weeks.

We have continued to see rates trend downward over the past few months for both fixed and variable products. Today we are seeing 5 year fixed products starting around the 4.5% range, and 3 year fixed about 10 – 20 points higher at 4.6 -4.7%. Shorter one and 2 year fixed are in the mid to high 5 range with a variety of lenders. With 3 cuts now to the Bank of Canada overnight rate we are seeing variable mortgages start around the 5.45% range.

Friday September 6th brings readings from both Canada and the US on the latest employment numbers, keep an eye on the bond yields as these readings will certainly have an impact. If we see softer than expected data expect bond yields to move down as a result, which puts further downward pressure on fixed products.

If you have a mortgage pre approval in place, or a renewal coming up I encourage you to reach out for a second opinion on your rates as some banks are adjusting downwards faster than others on their fixed products, and some banks are being more flexible than others when it comes to rate exceptions and discounts from posted rates.

Questions about your mortgage? I encourage you to reach out! Craig@vandoldermortgages.com

519 372 8524

Craig Van Dolder

BC Mortgage Broker

ON Mortgage Agent Level 2

C. 519-372-8524 E. craig@vandoldermortgages.com Web. vandoldermortgages.com