For many homeowners 55+, the goal is no longer downsizing, but aging in place + MORE Jul 23rd
B.C. home sales struggle in May as mortgage rates rise and labour market stays weak + MORE Jun 14th
Mortgage expert alert: Will the Iran War and rising inflation offer a buying opportunity in 2026? + MORE Apr 9th
Ontario review recommends expanding lender access for Level 1 mortgage agents + MORE Feb 7th
RFA mortgage originations rise 35% to $3.5 billion in first half Aug 16th
U.S. banks snatch up MBS that notched best returns since 2002
– canadianmortgagetrends.com
Flush with deposits, U.S. banks are buying up mortgage bonds and betting that the asset class will get a further boost in 2026 from relaxed capital rules.If not bonds, then what?
– moneysense.ca
I was recently warned by someone in the financial sector to think twice about investing in bond ETFs right now because now’s not a great time to do that. However, what alternatives are there for that 40% [fixed-income] portion of my balanced portfolio?
I thought about REIT ETFs, but read that they should be considered equity. I thought about Mortgage Backed Security (MBS) ETFs, but there seems to be only one in Canada (XMBS) and its chart seems to be very unimpressive.
I’m kind of at a standstill at the moment as I decide how to invest that 40%. Thanks for any advice you share.
—Jessica
Hi Jessica. I can understand why someone may have suggested why now is not a good time to buy bonds or exchange-traded funds (ETFs) invested in bonds. The average five-year return on bond funds has not been good, interest rates are fairly low, and there is uncertainty as to which direction interest rates generally will go, up or down.
Over the same time, equity markets have provided returns well above historical averages, which can lead people to take more risk than they normally would by reducing their bond holdings…
