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A look at the lowest available mortgage rates on fixed and variable terms and HELOCs this weekGene J. Puskar/The Associated Press

Fiscal imprudence costs Canadian mortgagors

Apart from a five basis point increase in the lowest nationally advertised one-year and five-year insured rates, the rate leaders didn’t budge this week.

That’s expected to change, within days if not hours.

McLister: Forecast curve CORRA holds clues about where interest rates could go next

Five-year bond yields, which lead fixed mortgage pricing, are breaking out to new 16-year highs. Fueling this latest yield push is the Fitch U.S. debt downgrade and an expected surge in U.S. Treasury supply.

That’s right: thanks to the link between our bond markets, America’s failure to prudently manage its budget is costing Canadian mortgagors. Albeit, with Canada’s hefty perma-deficits, we’re not one to lecture anyone on budgetary sensibility.

In any event, odds are, we’ll see higher fixed rates imminently unless Friday’s employment reports reflect a significant slowdown in the U.S. and Canadian economies. So if you need a mortgage in the next four months, grab yourself a rate hold, lickety-split.

Rates were sourced from the Canadian Mortgage Rate Survey on August 3, 2023. Only providers advertising rates online and lending in at least nine provinces are included. Insured rates apply to those buying with less than a 20 per cent down payment or switching a pre-existing insured mortgage to a new lender. Uninsured rates apply to refinances and purchases over $1 million and may include applicable lender rate premiums. For providers whose rates vary by province, their highest rate is shown.

Robert McLister is an interest rate analyst, mortgage strategist and editor of You can follow him on Twitter at @RobMcLister.

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