We have been featuring fixed rate mortgages as low as 3.89% on a 10 year and 2.94% on a 5 year fixed rate. These rate specials come and go as the yield on the Government of Canada 5 year Bond oscillates. Although it is my belief that rates will not move lower than they are right now, they may stay this low for some time, and that means Canadians have to make a decision. Does it make better sense to lock into a short term fixed rate like a 1 year or a 2 year fixed rate and save some money in the short term? Or should one take advantage of the longer term fixed rates now, on the off chance the inflation that everyone is worried about does creep into the market leaving us in a sea of 5%++ mortgage rates.

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