Federal Government competition pushes up fixed term mortgage rates

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Your Federal government competes against your and that is what drives fixed term mortgage rates.

In a global economy, all borrowers including the Canadian government are risk assessed for not only the expected rate of return on an investment but also what is the guarantee the investment capital will be safe.

The Federal government has the ability to tax not only you but the lender that provides you mortgage money.  The government's servants also carry the biggest weapons, so investors rate of return on government of Canada Bonds is a good place to observe and anticipate what fixed mortgage rates will soon be.

Go to the website for the Bank of Canada and follow recent yields (rates) of government of Canada bonds for the fixed rate term you are considering for mortgage.   If the trend for Bond yields has been going up, you can expect your fixed term rate selection to increase, too.