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Don’t look now but core inflation is moving up again — not only in Canada, but in the U.S. too. Some of it is expected because of a statistical quirk called base effects, but much of it may be inflation bottoming out, or at least significantly slowing its decent.
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Where we go from here depends partly on how U.S. president-elect Donald Trump’s tariff threat pans out. A 25 per cent tariff on Canada would shoot the Americans in the foot given how much their economy is tied to ours, but it could send Canada into an economic nosedive. Barring Trump effects, Canada’s consumer spending and employment isn’t as bad as economists expected mid-year.
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This potential economic rollercoaster calls for a hedged approach to mortgaging. That’s what a five-year hybrid mortgage — part fixed and part variable — is built for. Most lenders don’t have competitive hybrid mortgages, but you’ll find a few gems with combined advertised rates starting around 4.75.
For the crème de la crème hybrid rates, look to major banks like Bank of Nova Scotia. The best way to get one is to negotiate the lowest five-year fixed and variable rates separately. To do that, you need to contact a mortgage broker with top bank “status” or simply find an aggressive banker.
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Elsewhere in this week’s rate rodeo, we saw five moves among leading nationally advertised offers:
- One-year fixed (uninsured): -5 basis points
- Four-year fixed (uninsured): +5 basis points
- Variable (uninsured): +5 basis points
- Five-year hybrid (uninsured): +14 basis points
- Five-year fixed (insured): +5 basis ooints
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
Mortgage rates
The rates displayed below are updated by the end of each day and are sourced from the Canadian Mortgage Rate Survey produced by MortgageLogic.news. Postmedia and Imaginative. Online Inc., parent of MortgageLogic.news, are compensated by certain mortgage providers when you click on their links in the charts.
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