Weekly Mortgage & Market Update
Bond Yields Rise, Variable Rates Pull Ahead, and a Coquitlam Home With a Suite
Bond yields moved higher again this week, keeping pressure on fixed mortgage pricing. At the same time, the lowest advertised high ratio variable rate was notably below the lowest advertised high ratio five year fixed rate. Canadian producer prices rose because of energy costs, new home prices declined again, and Canada and the United States approached a weekend trade deadline with important terms still being negotiated. This week’s featured listing is a five bedroom Coquitlam home with a renovated in law suite that could help offset the monthly carrying cost.
Bond Yields Rise to 3.35% as the Advertised Rate Difference Widens
The Bank of Canada reported that the benchmark five year Government of Canada bond yield closed at 3.35% on Thursday. That was five basis points higher than Wednesday and approximately nineteen basis points higher than one month earlier. The increase continues to place pressure on fixed mortgage pricing.
As of August 19, Ratehub reported a lowest advertised high ratio five year fixed rate of 4.09% and a lowest advertised variable rate of 3.35%. That creates a difference of 0.74 percentage points. These are advertised market rates, not guaranteed offers, and eligibility depends on the borrower, property, mortgage purpose, amortization, and lender guidelines.
“The advertised variable rate is currently 0.74 percentage points below the advertised five year fixed rate. That difference makes a personalized comparison worth having, but the lowest rate is not automatically the best mortgage strategy.”
Variable is not the right choice for everyone. Payment stability, risk tolerance, prepayment options, penalties, and future plans all matter. Borrowers who value certainty may still prefer a fixed term. Borrowers who can manage rate movement may want to compare the potential savings and risks of a variable option.
Industrial Product Prices Rose, Led by Energy
Statistics Canada reported that the Industrial Product Price Index increased 0.6% in July and was 12.4% higher than one year earlier. Energy and petroleum product prices rose 6.4% during the month. Excluding energy and petroleum products, the index declined 0.2%.
Raw material prices moved in the opposite direction during July, declining 2.2% from June while remaining 18.1% higher than one year earlier. These producer price indexes are not the Consumer Price Index, but they provide useful information about cost pressures moving through the economy.
This release alone does not determine what the Bank of Canada will do at its September 2 announcement. The Bank will consider inflation, employment, economic growth, trade conditions, and other evidence before making its decision.
New Home Prices Declined Again
Canada’s New Housing Price Index declined 0.1% in July and was approximately 2.3% lower than one year earlier. The house component declined 0.2% during the month, while the land component declined 0.1%.
For buyers, softer new home pricing may create negotiating opportunities with some builders. Incentives, completion dates, deposit structures, assignment restrictions, taxes, and financing conditions can vary considerably, so the complete purchase contract and mortgage strategy should be reviewed before a commitment is made.
Weaker presale activity can also affect the future construction pipeline. Fewer projects moving forward today may reduce the number of completed homes reaching the market several years from now.
Canada and United States Trade Talks Approach a Saturday Deadline
Canada and the United States continued negotiations ahead of a Saturday deadline for threatened additional United States tariffs on approximately $20 billion of Canadian goods. Public reporting indicated that possible terms included lower tariffs on some Canadian vehicles, steel, and aluminum, but the agreement had not been finalized when this update was prepared.
A completed agreement could reduce uncertainty for workers, businesses, and borrowers in trade sensitive industries. If negotiations do not produce a final agreement, additional tariffs could affect employment, investment, consumer confidence, and prices. Those competing growth and inflation effects would also matter to the Bank of Canada.
What This Means for You
If You Are Buying
New home prices are softer and inventory remains elevated in several markets. Get prequalified, understand the difference between fixed and variable options, and include appropriate financing protection unless your mortgage and property have been fully reviewed.
If You Are Renewing
Rising bond yields can place upward pressure on fixed rates. If your renewal is within the next six months, begin reviewing your options now. A rate hold can provide protection while you compare lenders, terms, penalties, and payment strategies.
If You Are Comparing Fixed and Variable
The current advertised rate difference deserves attention, but the decision should reflect your budget, risk tolerance, expected time in the property, and need for payment certainty. Compare the total strategy rather than choosing a mortgage from the headline rate alone.
Featured Listing: Coquitlam Home With an In Law Suite
This week’s featured property is 2893 Delahaye Drive in Coquitlam’s Scott Creek neighbourhood. It offers five bedrooms, three bathrooms, more than 3,000 square feet of living space, city and Mount Baker views, and a renovated in law suite that may help offset the monthly carrying cost.
2893 Delahaye Drive, Coquitlam
3 Bathrooms
3,145 Square Feet
7,310 Square Foot Lot
Renovated In Law Suite
City and Mountain Views
Built in 1988
Parking for 8 Vehicles
Sunday, August 23 from 11:30 am to 1:30 pm. Visit 2893 Delahaye Drive in Coquitlam or contact listing agent Thomas Stipica at 604 375 5362 for more information.
The main home includes bamboo flooring, marble and granite finishes, gas fireplaces, a four piece ensuite, vaulted ceilings, and covered patio spaces. The large garage and driveway provide parking for up to eight vehicles.
The renovated lower living area includes two bedrooms plus a den, granite counters, a gas fireplace, and its own laundry. For illustration, the example below uses estimated rent of $2,200 per month. The legal use of the suite, municipal requirements, insurance, lender treatment, and achievable rent must be independently verified.
Using estimated rent of $2,200 per month, the suite could reduce the amount the owner must cover from other income. This is a gross rent assumption before vacancies, taxes, insurance, utilities, repairs, maintenance, and other ownership costs.
| Purchase Price | $1,688,000 |
| Down Payment at 20% | $337,600 |
| Mortgage Amount | $1,350,400 |
| Illustrative Rate and Term | 4.19% for 3 Years Fixed |
| Illustrative Amortization | 30 Years |
| Estimated Payment Every Two Weeks | $3,028.28 |
| Illustrative Stress Test Rate | 6.19% |
| Illustrative Qualification Income | $240,080 |
View the current property listing
Listing Agent: Thomas Stipica
Royal LePage Elite West
604 375 5362 | 604778property@gmail.com
All financing figures are illustrative and subject to lender approval, borrower qualification, property eligibility, and market conditions. The income estimate assumes the financing structure shown and may change based on property taxes, heating costs, other debts, credit, lender rental income treatment, and qualification rules. The rental estimate is approximate and not guaranteed. Closing costs, property taxes, insurance, utilities, vacancies, repairs, maintenance, and other ownership expenses are not included. Rates can change without notice.
What’s On This Weekend: August 21 to 23
Sources
- Bank of Canada, Selected Bond Yields
- Ratehub, Advertised Mortgage Rates
- Statistics Canada, Industrial Product and Raw Materials Price Indexes for July 2026
- Statistics Canada, New Housing Price Index for July 2026
- Associated Press, Canada and United States Trade Negotiations
- REW, 2893 Delahaye Drive Property Listing
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