11:56 AM EDT, 09/11/2024 (MT Newswires) -- One thing that is important for Canadian borrowers to consider is that the prospect of lower longer-term interest rates is "slim," said Scotatiabank.

The yield on five-year Government of Canada bonds was around 2.8% when the bank wrote its note on Tuesday.

These longer-term interest rates already build in the expected decline in policy rates both in Canada and the United States, stated Scotiabank.

From a potential homebuyer perspective, the bank wouldn't expect much lower five-year rates going forward and indeed its forecast is for those rates to drift up as markets price in a proper term premium into the yield curve.

The decline in borrowing costs will be much more concentrated in shorter maturities and in prime lending rates.