Mortgage Update for October 2019

29 October 2019
Life and the City

In the face of global economic uncertainties and trade headwinds, Canada once again proved resilient posting higher than expected job gains in September (+53,700). Canada has now created 358,100 jobs this year, which is the most in the first nine months of a year since 2002. The unemployment rate also dropped to 5.5% near the lowest in the past four decades.

What does this mean for mortgage rates?

From a fixed rate perspective, bond yields increased on this news and we are starting to see lenders pull their rate specials and increase their fixed rates slightly (increases are ranging anywhere from +0.10% to +0.25%). There are a few lenders that have yet to change, so potential homebuyers may see this as a good time to secure a rate.

From a variable rate perspective, the market still anticipates that the next move by the Bank of Canada will be downward -- the big question is when. At this point, it appears any change by the Bank of Canada would not be until 2020.

Note that while fixed rates have crept upward recently, they still remain near all-time lows, and continue to be below variable rates. While a 5-year fixed may seem like the obvious choice (also some great 2-year and 3-year fixed rates available), it is always important to incorporate clients goals and the potential risk of penalties in any analysis.


Article courtesy of Samantha Comito, Mortgage Broker and Partner with Outline Financial

Questions? You can contact Samantha directly at 416.803.1453, or via email at You can also fill out the form below and we'll get back to you!