Why CoronaVirus = Lower Mortgage Rates

This link does a great job explaining why rates are coming down right now for mortgages.

https://www.cbc.ca/news/business/coronavirus-mortgage-rates-canada-1.5443071

Summary:

• Events that could cause a stock market crash tend to also cause a “flee to safety” and the 5-year Canadian Mortgage Bond is that safety net.
• When investors buy these bonds the demand goes up so the bonds pay less as everyone wants them.
• The lower cost of the bond means a lower interest rate on your mortgage

This should be a short term blip, so if you are buying a home take advantage of it quickly

Mark Herman, top Calgary mortgage broker