Bond Spreads Tightening

It’s Time to Get Pre-approved!

Are you thinking of buying or refinancing? Well, if you are it is time to get pre-approved and get a rate hold in place. The link below shows the current movement in the 5 year Canada Government Bond. As you can see the yield continues to rise which is causing the spreads (the profit for a mortgage for the lenders) to be a full 30-40bps lower than desired. Based on desired industry spread the current rates should be closer to 3.39% right now. The spring market has influenced a much smaller profitability level, but don’t expect it to last.

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