Interest Rate Spread Between BoC Bank Rate Less the Posted
5yr Fixed Mortgage and CPI, Real Bank Rate & TSX RE Index
The chart above shows that in Augusst 2014 the spread between the Canadian Bank Rate (1.25%) and the posted residential 5 year fixed mortgage (4.79%) remained at its narrowest (3.54%) since the Aug-Sept 2008 spread of 3.6% which did not augur well that fateful autumn.
The continuing zoom in CPI (now 2.1%) is pushing the real Bank Rate deeper into a negative return. The trend