Article below shows value in taking the MERIX 50/50 Wise mortgage and limiting client payment shock when variable rates start to rise. I have attached an article previously shared  “Don’t Handcuff Your Mortgage”.  While some of the facts are out of date (such as ARM rates being P+60), the advice to diversify risk on debt as well as on investments, is still valid-especially if the predictions of Prime jumping a full 1% are correct.

·          TSX -120.70 slid to its lowest level in more than a week as a drop in commodity prices shook the resource-heavy index. The TSX is still up 52% from the 5-year low it fell to in March.

·          DOW -1.04.14

·          Dollar -.99c to 93.99cUS

·           Oil  -$1.31c to $72.62US per barrel.

·           Gold -$20.60 to $1,143.00USD per ounce bullion extended its decline from last week’s record high due to a stronger greenback, which dents gold’s appeal and makes dollar-priced commodities more expensive for holders of other currencies.

·           Canadian 5 yr bond yields -.02 bps to 2.46. The spread, based on the MERIX 5 yr rate published rate increased to 1.63.

·          http://www.financialpost.com/markets/market-data/money-yields-can_us.html?tmp=yields-can_us

The rate of return on your bond, can be read through a yield curve, If the increase in bond yield continues to go up, the spread will continue to shrink and this could be a trigger for interest rates to rise. Ideally lenders are looking for a spread between 1.35 and 1.55

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