Bond Yields Surge, Mortgage Rates Rising in Response + MORE Feb 24th

Canadian bond yields hit their highest level since April in recent days, and a number of lenders have responded by starting to raise some of their mortgage rates. CMLS, MCAP and First National were among the non-bank lenders to increase at least some of their rates, with their broker rates rising 10-30 bps. The 5-year bond yield, which leads fixed mortgage rates, closed at 0.67% on Monday, a 10-month high. As funding costs rise, lender margins get squeezed to the […]

You may have seen or heard reports of pending fixed rate increases. The media loves to spread and focus on bad news more than good news. That’s the media for you, though.

This is your notice that fixed rates could go up over the next few weeks. Now that we have that out of the way, let’s talk about what you should do. Personally, I am doing nothing. I am keeping all my mortgages in a variable rate. The reasons are simple. 

We don’t expect the Bank of Canada to increase the prime rate for a few years, or possibly even longer. In fact, the Bank of Canada has made it clear that they will not raise the prime rate until at least 2023. However, fixed rates are priced on the Government of Canada bond yields. Bond yields have gone up slightly due to an increased sense of optimism about the economy recovering in the coming months. Just last week, Canada purchased $436.5 million in provincial bonds in hopes of re-inflating the economy. This has a direct impact on fixed interest rates…

When it comes to conversation-starters, life insurance generally doesn’t rank in the top 10. We get it—who wants to think about the end of their own life? But it’s important to know the ins and outs of life insurance coverage so you leave your loved ones financially secure in the event of your death. Here’s everything you need to know about term life insurance in Canada.
What is term life insurance?
The basics of life insurance are as you guessed: You pay small amounts of money over a length of time and, when you die, money is left for your family.
Term life insurance is one of the many types of life insurance available in Canada. As simple as its name implies, term life insurance provides coverage based on a set period of time, usually a 10-year, 20-year or 30-year term. 
Many opt for term life insurance because it offers low-cost coverage for a certain amount of time, and it is generally well-suited for covering debts with a known lifespan, like a mortgage. Generally speaking, premiums can range from $13 a month to more than $100 a month for $100,000 of coverage, depending on a wide range of factors, like your age, health and lifestyle…