Toronto, ON – (June 1, 2012): Canada continues to proceed with caution amidst fears of the impending European crisis. Government of Canada bonds continue to be attractive to international and Canadian investors alike, and the Bank of Canada’s rate is expected to remain on hold. What does that mean for mortgage rates? RateSupermarket.ca’s Expert Mortgage Rate Outlook Panel believes Fixed rates are due for a dip while Variable rates are likely to remain unchanged.
Fixed mortgage rates: Down
European crisis fears continue to drive investors toward the relatively safe haven provided by Government of Canada bonds. Five-year bond yields decreased 22 per cent in May, therefore RateSupermarket’s panelists expect a decrease in fixed mortgage rates in the short term; though the government is on a full court press to convince consumers that higher rates are ahead, the bond market tells a different story.
“We expect fixed rates to drop a bit in the next 30 – 45 days,” says panelist Elisseos Iriotakis. “I wouldn’t be surprised if we saw the four and five year fixed terms at 2.99 per cent once again.”
Variable mortgage rates: Unchanged
The Bank of Canada is staying put in the face of European unease, keeping a consistent hold on its key interest rate for the foreseeable future. Our panel does not anticipate any change to variable mortgage rates before the fall.
About the Mortgage Rate Outlook Panel
The Panel includes some of the country’s top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.
This month’s panel members:
- Mark Kocaurek, Senior Vice President, Treasury & Lending (Chief Lending Officer) of ING DIRECT Canada
- Elisseos Iriotakis, B. Comm.,CFP, FMA, AMP, VERICO Safebridge Mortgage Solutions
- Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals
- Dan Eisner, MBA. AMP. President, True North Mortgage
About RateSupermarket.ca (www.ratesupermarket.ca)
RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency to the Canadian financial market and allows visitors to quickly find the best mortgage rates. Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 2M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.