April 30, 20263 min read
A strong mortgage plan starts by separating what is technically allowed from what is financially comfortable. Fixed mortgage rates do not simply wait for the Bank of Canada to move. They are heavily influenced by bond yields, lender funding costs and competition.
How lenders approach it
Here is what matters most:
- Government of Canada bond yields can move in anticipation of inflation, growth and future policy changes.
- Lenders add funding, capital operating and profit considerations when setting mortgage pricing.
- Promotional rates can change quickly when a lender wants more or less volume in a particular term.
- That is why fixed rates can rise or fall between Bank of Canada announcement dates.
Watch the mortgage market itself rather than assuming the overnight rate predicts every fixed-rate change.
Want this applied to your own numbers?
Call Phil Cragg at 866-349-4915 or request a written comparison.
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