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> a steep (ie, 1000 bps) premium

I think that you have an extra zero there?




Maybe we should split the difference! The best 25-year fixed-rate mortgage currently appears to be 9.75%, which is about 500 bps higher than the best 5-year fixed-rate mortgage [1]. But in 2021 with 5-year fixed mortgage rates near 2%, the 25-year fixed-rate was still around this level. So it looks like the premium has gone down a bit since the last time I checked. Perhaps that's partly a result of the yield curve inversion we have these days, since the Canada 30-year bond yield is presently just 3.2%. [2]

[1]: https://www.ratehub.ca/best-mortgage-rates/25-year/fixed

[2]: https://www.marketwatch.com/investing/bond/tmbmkca-30y?count...


When you wrote “5 years is generally the highest [term] at which you don’t etc.” it sounded as if you meant that for a term of say 10 years you did etc. [The spread between the 5y and the 10y rates is around 100bps.] There is quite a range of terms higher than 5 and lower than 25.


Ah, I see. Yes, my wording could have been better.




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