Here are the latest interest rates forecast by the banks. Note that the 5-year government bond rates lead the 5-year fixed mortgage rates.

Lender 2011 2012

BMO 2.93% 3.80%
National 3.46% 3.88%
RBC 3.30% 4.05%
Scotia 2.85% 3.35%
TD 2.70% 3.65%

Given this forecast, one can expect 5-year fixed mortgage rates to hover between 5%-6% by the end of 2012. If you need a fixed mortgage, today is a good time to lock-in.

First Toronto Mortgage (http://firsttorontomortgage.com)

Bond yields have increased 6 bps (to 2.31%) today. Although this is not a massive increase, mortgage rates generally follow. Here are our best current rates:

1 year: 2.64%
3 year: 3.35%
5 year: 3.54%
10 year: 4.99%
Variable: 2.15%

First Toronto Mortgage (http://firsttorontomortgage.com/)

The Bank of Canada dropped their posted mortgage rate from 5.49% to 5.39%! In the short-term, mortgage rates appear to be stabilizing. Given the strength of the Canadian dollar, perhaps mortgage rates will remain low for longer than expected.

Our rates:

1 year: 2.64%
3 year: 3.35%
5 year: 3.54%
10 year: 4.99%
Variable: 2.15%

First Toronto Mortgage (http://firsttorontomortgage.com)

Earlier this week the Bank of Canada had a meeting to discuss monetary policy and their Key Lending Rate. The result was no change in the Key Lending Rate, as it remains at 1%. Given that the Canadian dollar is fairly strong and interest rates have not increased as much as forecasted yet, I personally do not believe that we will see any dramatic increase in interest rates over the next year.

Also lenders have reacted by dropping their mortgage rates. Here are our current rates:

1 year – 2.64%
2 year – 3.30%
3 year – 3.35%
4 year – 3.69%
5 year – 3.54%
Variable – 2.15%

First Toronto Mortgage (http://firsttorontomortgage.com)