Good news for borrowers; not so much for the economy

A west-end Toronto home for sale. Photo by Graeme Roy/The Canadian Press files

Canadian bond yields have sunk to their lowest point in half a year. It’s a grim little paradox that reflects bad news for the economy but cheaper borrowing costs for mortgage shoppers.

Competitive lenders are already passing along the fruits of falling yields. Among the terms that became cheaper this past week:

Three-year uninsured fixed rates are down five basis points to 3.89 per cent

Five-year uninsured fixed rates are down 10 basis points to 3.99 per cent

Five-year insured fixed rates are down five basis points to 3.79 per cent

(Reminder: one basis point equals one-hundredth of a percentage point.)

Keep in mind, these are nationally advertised rates. If you’re ultra well-qualified or live in the