The Globe and Mail reports in its Thursday edition that the yield on the five-year government of Canada bond hit the 1.503-per-cent mark Wednesday, which is up from 0.39 per cent at the beginning of the year and a hair's distance from where it stood before the pandemic. The Globe's Rob Carrick writes that homeowners and those who want to buy should be concerned because five-year government bond yields set the trend for fixed mortgage rates. The Ratehub.ca historical mortgage rate database says discounted five-year fixed mortgage rates were as low as 1.39 per cent at the beginning of the year, which compares with current rates in the 2.35- to 2.59-per-cent range at national mortgage brokerage companies. Buyers are keeping purchases affordable with variable-rate mortgages, which can be had at rates that are one percentage point and more below fixed five-year rates. Mr. Carrick notes that with a variable-rate mortgage, you are subject to every increase coming in the Bank of Canada overnight rate in the next 12 to 18 months. Canada's house-buying mania continues, with more average resale home prices topping $1-million or more. Hamilton, a steel town just west of Toronto, is on the verge, along with nearby Burlington.
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