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> Firstly US does not dictate Canadian rates, sadly. Of course not, but 5 year-fixed rate mortgages are set according to the bond market, not BoC overnight rat
by jperras 10y ago
> Firstly US does not dictate Canadian rates, sadly.
Of course not, but 5 year-fixed rate mortgages are set according to the bond market, not BoC overnight rates.
If interest rates set by the US Fed are high, then lenders are going to securitize Canadian mortgages with US bonds, due to the higher yields found there.
- RandyRanderson 10y agoAgreed. While the US and CA rates sometimes differ, it's not by much and they usually loosely track each other. This is the effect when you have 2 economies that are so closely tied.