True North Mortgage reports fixed-rate increases from multiple lenders

CALGARY, Alberta, Sept. 29, 2021 (GLOBE NEWSWIRE) -- True North Mortgage, a trusted Canadian brokerage company, announced today that their advertised 5-year fixed mortgage rate went up several times over the course of the day, from 1.79 per cent to now sitting at 1.99 per cent at the time of this release.

"After months of lows, and continued historical lows during the pandemic, we're wondering if this is the turning point for fixed rates," says Scott Haggar, Marketing Manager of True North Mortgage. "We've been watching the 5-year rate climb several times today, with many lenders raising their rates." These increases come after lenders last week lowered their fixed mortgage rates.

A sudden rate increase has been on everyone's radar during the past couple of days. Market watchers noticed a sharp climb in the Bank of Canada's long-term bond yields earlier this week, after a downward trajectory the past few months. Yesterday, the government benchmark 5-year bond yields climbed to a high point this week of 1.9 per cent, harking back to pre-pandemic days.

Banks use the 5-year bond yield market to determine their fixed mortgage rates, using the forecasted earnings from bond investments to cover the costs and possible losses incurred through their mortgage lending. So, when bond yields rise, fixed rates usually follow.

What does this sudden rate increase mean for their True North Mortgage clients? Mr. Haggar states, "Even though the 5-year fixed rate increased today, rates are still really low. If rates continue to climb, getting your mortgage or renewal will cost that much more." True North Mortgage has access to thousands of mortgage products, and the 5-year fixed-rate mortgage is the most popular with their clients.

Rates may still be tempered as Canada's sketches out an economic recovery, but with this marked rise in the popular 5-year fixed mortgage rate, there's definitely a change in the mortgage-rate winds.

About True North Mortgage: Opening its first retail store in Calgary, Alberta in 2006, True North Mortgage now has 11 convenient locations across Canada. Through a unified, highly-trained brokerage model, they provide better rates and mortgages anywhere their clients are in Canada, with an easy application process available online, on chat, over the phone, or in person at their store locations. True North Mortgage was recently named the Canadian Mortgage Professional Magazine (CMP) Top Brokerage of 2021.

For more information, please contact:

Scott Haggar, Marketing Manager
True North Mortgage
[email protected]
truenorthmortgage.ca