Government of Canada five years bond yield went below 1.25%and since last month and it is staying under that mark. Fixed mortgage rates for five years term is somewhat dependant on this yield. So far mortgage rates did not show any major sign of movement but overall it is also following the similar trend.
The new mortgage regulation will not show any significant impact if the rates stay this low. The only issue a borrower may face – to qualify for a high ratio mortgage. That can be resolved by lowering the qualifying rate. Various lenders have different policies when it comes to qualifying rate but exceptions can be obtained depending on the case.