Mortgage rates have more to do with forward looking guestimates of the banks economists. LOC rates (short term variable) are typically reactionary to the Bank of Canada Prime Lending rate. That said, the bank is not obligated to follow the rule. But if they don't you can take your debt elsewhere. Also, with the rate hike on the 5yr they are saying that they think Prime will be higher in five years then they thought it would be 2 weeks ago.
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