RateSupermarket.ca’s Expert Mortgage Panel Predicts Status Quo on Mortgage Rates

Toronto, ON – (May 10, 2012): Increased uncertainty in Europe and the wider global economy will cause Canada to sit back and wait before making any major changes to interest rates that could potentially derail its economic growth. While this waiting game plays out, RateSupermarket.ca’s panel of mortgage experts expect both fixed and variable mortgage rates to remain unchanged in the short term.

Fixed mortgage rates: Unchanged

Demand for mortgages is moderating in many parts of the country, and there is decreased need for competitive discounting from big lenders to maintain mortgage market share. All these factors point to one conclusion – little change is on the horizon for fixed mortgage rates. Our panel of experts expect fixed rates to remain level for the next 30-45 days.

Variable mortgage rates: Unchanged

The recent French and Greek elections raise concern for the future stability of the Eurozone. Will Greece exit the European Union?  If so, how many other debt ridden countries will follow? With so many questions unanswered, our Mortgage Rate Outlook Panel members think the Bank of Canada is unlikely to risk rocking the boat by increasing interest rates any time soon.

This, coupled with the fact that discounts to the Prime rate are not expected to budge given the lack of interest in variable rate terms at the moment, means that variable mortgage rates will stay where they are in the short term.

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
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• 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 Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, banking, credit cards and GICs.

CAAMP Response to Draft Guideline B-20 Residential Mortgage Underwriting Practices and Procedures

Back in March of this year, OSFI (Office of the Superintendent of Financial Institutions Canada) released their draft recommendations to banks and other federally regulated lenders to tighten underwriting practices.  The OSFI was calling on banks to submit their feedback to the suggested changes with the deadline being this past Tuesday, May 1^st.

The Canadian Association of Accredited Mortgage Professionals (CAAMP) is Canada’s national mortgage industry association, representing the largest and most respected network of mortgage professionals in the country.  CAAMP chose to comment on 5 areas surrounding the 18 pages of recommendations released by OSFI:  (1) loan documentation, (2) debt service charge (additional assessment criteria), (3) loan to value ratios, (4) down payments and (5) home equity lines of credit (HELOC).

You can find the entire report from CAAMP here.

Loan Documentation and Underwriting

In terms of the loan documentation, it sounds as though OSFI has suggested that at renewal, a client must re-qualify and endure the entire underwriting process.  CAAMP and others alike are looking for clarification around this proposed change.  If the idea behind this is to literally re-qualify the client, CAAMP does not support this movement.  How would you feel if when your mortgage came up for renewal, you’ve made all of your payments on time, but somehow you no longer “qualify” for that mortgage?  This might be due to the fact that you are now retired or your income isn’t what it used to be.

The idea of re-qualifying for a mortgage that you’ve been compliant with seems a little backwards to most…myself included.  The majority would support the idea of re-assessing the risk at the time of renewal, but find it unnecessary to go through the whole underwriting process again.  CAAMP has suggested that implementing such a process “would result in a number of properties hitting the market at the same time thereby driving down prices”.  I find this to be a little dramatic as I don’t believe that a large number of consumers wouldn’t re-qualify … but I do agree that re-qualifying is redundant.

Down Payment

OSFI has also proposed that any cash back amounts received from mortgages should not be used as any part of the down payment.  CAAMP has sided with OSFI on this change and supports the idea that borrowers should have “skin in the game” (one of the 5 C’s of credit).  There was a reason that the Minister of Finance ended the no down payment mortgage back in 2008…and it wasn’t to spark creativity among borrowers by using a 5 per cent cash back product to satisfy the minimum down payment requirement.  I agree!  Borrowers should have some capital to put towards what likely will be the biggest loan they will ever have.

The Mortgage Market in Canada

Canada’s mortgage market is said to be a model to markets around the world.  Our success distinguishes us from the rest of the world. We can attribute our success to the regulations that we have in place, and the governing bodies who ensure compliance.  The demise of the American mortgage marketplace and the bailouts that the U.K. banks had experienced should be a reminder that sound policies are a cornerstone to our success, and although tedious it is important that we review and alter them periodically.

Market Update

StatsCan released a report on Canada’s GDP for February 2012.  Due to a weak global demand and temporary mining closures in February (namely across potash and nickel mines in Saskatchewan), overall real GDP declined 0.2 per cent.  Canada experienced decreases across its agriculture and forestry, mining and oil and gas, manufacturing, utilities, and retail sectors which wasn’t offset by the increases across construction, wholesale, financial and insurance, education, health, and public administration sectors.

So let’s focus on the areas that are directly speaking to the mortgage and housing industry.  Construction rose 0.5 per cent in February due to increases in residential and non-residential building constructions.  Output of real estate agents and brokers also increased 1.1 per cent in February due to increased activity in the home resale market.  And finally the finance and industry sector climbed 0.5 per cent.  All good news!

RateSupermarket.ca Week in Review

It feels funny to report a notable change to the best mortgage rate page since rates have been so stagnant for the last little while.  However the 3 year variable rate has increase by 15 bps over the last week, leaving the best rate in Canada right now sitting at prime – 0.10.  The only other increase to rates over the last week was the 5 year fixed rate, up 5 bps from last week and sitting at 3.14 per cent.  Do you want to know when the best mortgage rates change?  Be the first to know and sign up for RateAlert, RateSupermarket.ca will e-mail you a daily digest of the mortgage rates that have changed in your area!

Still hot in the number one spot for the most popular searched mortgage rate is the 5 year fixed mortgage rate with a 47.3 per cent viewing rate.  Following the 5 year fixed is the the 5 year variable rate which sparked an interest in 22.9 per cent of RateSupermarket.ca’s visitors, the 10 year fixed which was searched by 9 per cent and finally the 3 year fixed searched by 5.7 per cent.

RateSupermarket.ca’s Expert Mortgage Panel Predicts Hike in Fixed Rates, but Stability in Variable Rates This Month

TORONTO, ONTARIO–(April 10, 2012) – The spring real estate frenzy has started early this year, perhaps due in part to record low fixed mortgage rates in March. Sadly for borrowers, all good things must come to an end. To paraphrase the old saying, “what goes down must come back up.” As such, fixed rates are expected to rise this month, according to some experts.

Conversely, RateSupermarket.ca‘s Mortgage Rate Outlook Panel is anticipating variable mortgage rates to remain unchanged in April.

Fixed Mortgage Rates: Up

The price wars that sent fixed mortgage rates to historical lows last month seem to be over (for now). The record low rates were an attempt to snap up market share early in the year and get a jump on the peak home buying season, but those rates were unsustainable according to the Expert Panel.

With the increase in bond yields and persistent political and media attention around house prices and consumer debt levels, we should see fixed mortgage rates increase during the month of April.

Variable Mortgage Rates: Unchanged

RateSupermarket.ca‘s Panel members believe that inflation remains in check, the provincial election is heating up in Alberta, and the risks to global economic growth remain biased to the downside.  All these factors combined mean the Bank of Canada is unlikely to make any change to interest rates when they meet on April 17.  As a result, Prime rates and discounts off of variable rate mortgages will remain stable in the short-term.

To read all the detailed commentary from our Panel Members, please visit:

http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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
• George Hugh, President and Co-founder, Taurus Mortgage Capital.
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• 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 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.

RateSupermarket.ca’s Expert Mortgage Panel Expects Moderate Increases to Fixed Mortgage Rates and Level Variable Rates Heading Into Spring

TORONTO, ONTARIO–(March 7, 2012) – With the spring real estate season on the horizon and historically low interest rates, the debate on the minds of those preparing for a mortgage is Fixed vs. Variable. Although the Fed has promised to keep their interest rates constant until 2013, in Canada  several factors can impact rate fluctuations, though in this market, likely not significantly.

Significant or not, RateSupermarket.ca‘s Mortgage Rate Outlook Panel is anticipating an increase in Fixed mortgage rates in March, albeit a moderate one. The Panel expects Variable rates to hold steady.

Fixed Mortgage Rates: Up

Since the beginning of February, we`ve seen bond yield creep up and few lenders have adjusted their rates accordingly.

This month our panel of mortgage experts foresee those increases being passed on in the form of moderately higher fixed mortgage rates.

But not to worry, it`s likely that any significant rate increases will be dampened by the prospect of a somber upcoming budget announcement with cuts expected to reach $4-8 billion annually including public servant layoffs.  The announcement will likely dampen demand for mortgage funding and further cool down the housing market.

Variable Mortgage Rates: Unchanged

The Bank of Canada meets on Thursday of this week (March 8th) for their next interest rate announcement.  Similar to the last 11 rate announcements, experts are not anticipating any change to the key overnight lending rate, and hence variable mortgage rates should remain unchanged.

Moving ahead of the U.S. and increasing our interest rates in Canada would increase the value of the Loonie, which in turn would slow exports and could send Canada into a recession.  This is a risk the Bank of Canada is not likely to take.

To read all the detailed commentary from our Panel Members, please visit:

http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals
• Dan Eisner, MBA. AMP. President, True North Mortgage
• Elisseos Iriotakis, President, Safebridge Financial Group

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 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.

RateSupermarket.ca’s Expert Mortgage Panel Believes Fixed and Variable Mortgage Rates Will Remain Level in February

TORONTO, Feb 7, 2012… Recent fluctuations in variable and fixed mortgage rates have left Canadian consumers confused about future mortgage trends.  The good news is that February should be less volatile, with RateSupermarket.ca‘s Mortgage Rate Outlook Panel anticipating both fixed and variable mortgage rates will remain level during the month.

At the end of last year lenders reduced their discounts to prime which increased variable rate mortgages due to tightening margins. Last month they dropped fixed mortgage rates to record lows to kick off 2012 and develop their sales pipelines for the new year.  So what’s in store for this month?

Fixed mortgage rates: Unchanged

The big banks recently dropped their best mortgage rates for fixed 4 and 5 year terms to record lows, causing a frenzy in the market.  Hyper competition to lock down market share early in the year has started to cool with most of the rate specials ending. Although, spreads between bond yields and current fixed rates still remain attractive (technically lenders have room to drop fixed rates even more!).

However, lenders are likely to practice caution given the continued uncertainty in the global economy and the escalating political and media pressure about low rates fuelling a housing bubble.  As a result, our Panel members anticipate fixed mortgage rates will remain unchanged in the short term.

Variable mortgage rates: Unchanged

The next Bank of Canada rate announcement will take place on March 8, 2012.  Most experts believe they will hold interest rates steady again, leaving variable mortgage rates unchanged. Given the Federal Bank’s recent announcement that it will keep US interest rates low into 2014, coupled with very weak recent Canadian economic data, our Panel members think any alternative action from the Bank of Canada is unlikely.

To read all the detailed commentary from our Panel Members, please visit: http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals
• Dan Eisner, MBA. AMP. President, Verico True North Mortgage
• Elisseos Iriotakis, President, Safebridge Financial Group

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 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.

RateSupermarket.ca’s Expert Panel Believes Fixed Mortgage Rates Will Decrease as Competition Heats Up.

TORONTO, Jan 9, 2012… Canadian consumers could see lower fixed mortgage rates this month as competition heats up and lenders look to build their mortgage pipeline for the year, says RateSupermarket.ca’s Mortgage Rate Outlook Panel for January 2012.

Lenders are eager to get a good start to the new year and build up their fixed mortgage rate client base, which means fixed rates could decrease as competition picks up. Variable mortgage rates, on the other hand, are expected to remain level.

Fixed mortgage rates: Down

Given the forecast for slow growth in 2012 and the ongoing European sovereign debt crisis, Canadian bond yields are expected to stay where they are; which is a strong indication that fixed mortgage rates should remain unchanged in the short term.

However, our panel of mortgage experts is not ruling out a slight reduction in fixed mortgage rates as lenders get a jump start on the year and build their pipeline for 2012.

Variable mortgage rates: Unchanged

The next Bank of Canada interest rate announcement will take place on January 17th, 2012.   Our panel of mortgage experts is not expecting any change in the key overnight lending rate for at least the next 6 months due to ongoing turmoil in the global economy.  It is also unlikely that lenders will increase or decrease their discounts to prime rates in the short term.  As a result, Canadian consumers can expect variable mortgage rates to remain where they are.

To read all the detailed commentary from our Panel Members, please visit:

http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• Dan Eisner, MBA. AMP. President,  Verico True North Mortgage
• Elisseos Iriotakis, President, Safebridge Financial Group
• Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals

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 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.

RateSupermarket.ca’s Expert Panel Expects Lower Fixed Mortgage Rates

TORONTO, Oct 6, 2011… A great shift is happening in the mortgage market as lenders are enticing Canadian consumers to deeply discounted fixed mortgage rates and away from variable mortgages.  Low bond yields continue to provide lenders with room to manoeuvre and offer better pricing on fixed products, says RateSupermarket.ca’s Mortgage Rate Outlook Panel for October 2011.

A few, short weeks ago variable mortgage rates were still being offered at Prime – 0.95%.  Market conditions have changed dramatically resulting in variable products moving 0.50% higher, despite no change to the Bank of Canada’s key interest rate.  This now puts variable rates in line with two year fixed mortgages.

Over the short term, the Panel believes fixed mortgage rates will dip, as lenders try to make them even more attractive to home buyers, while variable rate products will remain unchanged at their current higher levels.

Fixed mortgage rates: Down

In an effort to put longer term assets on their books mortgage lenders are attracting consumers with lower and lower fixed mortgage rates, as bond yields remain low.  Our Panel believes the short term fixed mortgage rate trend is down.

Variable mortgage rates: Unchanged

“Nein to Greece” is what one Panel member believes Europe will decide; putting the country into default as the outlook worsens for the financial crisis across the Atlantic. This is already starting to hit home as the possibility of a Greek default is affecting Canadian lenders, leading to higher variable mortgage rates as lenders reduce their discounts to Prime.

Our Panel believes that in an effort to shift consumers away from variable products, lenders will keep variable mortgage rates stable over the short term with a bias towards increasing them closer and closer to Prime.

To read all the detailed commentary from our Panel Members, please visit:

http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• George Hugh, President, Taurus Mortgage Capital, former Vice President, Treasury, ING DIRECT
• Dan Eisner, MBA. AMP. President,  Verico True North Mortgage
• Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals

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 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.

RateSupermarket.ca’s Expert Panel Believes Lenders will Keep Rates Steady

TORONTO, Sept 13, 2011… The experts have spoken and the common theme for this month’s RateSupermarket.ca Mortgage Rate Outlook is higher margins.

Variable mortgage rates increased last month and most of the Big 6 Banks only recently reduced their fixed mortgage rates despite a huge drop in bond yields over the past several weeks.  Lenders are still enjoying mortgage spreads near historical highs.

Ultra low mortgage rates have resulted in unsustainable profitability so lenders are happy with increased margins. As a result, our Panel believes that fixed and variable mortgage rates will stay where they are for the time being.

Fixed mortgage rates: Unchanged

Many non-Big 6 mortgage lenders dropped their fixed mortgage rates weeks ago, while the major banks only started to drop rates slightly this week.  Following positive third quarter results from most of the banks, it seems most will continue to pad their margins versus pushing further into the rate war and going for market share.

Our Panel believes fixed mortgage rates will not change significantly in the next few weeks.

Variable mortgage rates: Unchanged

Variable mortgage rates increased last month as lenders reduced their discounts to Prime citing unsustainable margins. This move followed the Bank of Canada announcement that interest rates will remain unchanged and the consensus is that this will continue for the rest of the year.

Other lenders started to follow suit and cut their discounts to Prime as well, but our Panel of experts don’t see any more changes to variable mortgage rates in the short term.

To read all the detailed commentary from our panel members, please visit:

http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• Dan Eisner, MBA. AMP. President,  Verico True North Mortgage
• Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals

About RateSupermarket.ca (www.ratesupermarket.ca)

RateSupermarket.ca is the largest independent and 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 rates.  Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.

RateSupermarket.ca’s Expert Panel Believes Fixed Rates are Heading Lower

TORONTO, August 17, 2011… RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates, credit cards, savings rates and insurance quotes, has announced the results of their latest Mortgage Rate Outlook Panel.

The world was in a frenzy earlier in the month due to the US debt ceiling crisis and continued concerns in Europe.  Many Canadians took a hit on their stock portfolios but there is some good news coming out of this turmoil says RateSupermarket.ca `s Mortgage Rate Outlook Panel.  They believe fixed mortgages rates are heading lower while variable mortgage rates will remain at current low levels.

Fixed mortgage rates: Down

The benchmark Government bond yield dropped over 40% in the last month, resulting in five year fixed mortgage rates hitting an all time low in August.  Couple this with the fact that all major banks have not yet decreased their fixed mortgage rates and the Panel believes that fixed rates will head even lower before summer’s end.

Variable mortgage rates: Unchanged

After the most recent Bank of Canada rate announcement, the guessing game started on when, not if, the federal bank will start increasing interest rates to “normal levels”  this year.  The past few weeks have changed this thinking and many believe that the Bank’s hands are tied, and now expect a delay in raising rates until 2012.

As variable mortgage rates typically follow the Bank of Canada’s key interest rate, in normal times it would be expected that variable rates would also remain unchanged.  Our Panel believes that this is true in the short term, however, they note that mortgage lender`s profitability on variable rates are low, putting upward pricing pressure on variable rate mortgages in the longer term.

To read all the detailed commentary from our panel members, please visit:

http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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
• Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
• George Hugh, President, Taurus Mortgage Capital
• Dan Eisner, MBA. AMP. President,  Verico True North Mortgage
• Wayne  Spinney, Mortgage Agent, Centum Mortgage Professionals

About RateSupermarket.ca (www.ratesupermarket.ca)

RateSupermarket.ca is the largest independent and 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 rates.  Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.

RateSupermarket.ca’s Expert Panel Believes Rates will Stay Low until the Fall

TORONTO, June 10, 2011… RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates and credit cards, has announced the results of their Mortgage Rate Outlook Panel for June 2011.

You can’t rush a recovery – no matter how hard you try.  With some of the world’s largest economies still struggling, the Bank of Canada is waiting patiently before making a move to increase interest rates which will also cause variable mortgage rates to rise.  Fixed mortgage rates, on the other hand, will stay low as homebuyers retract from the market.

Fixed mortgage rates: Unchanged

We’ve seen lower fixed mortgage rates over the past few weeks, and our Mortgage Rate Outlook Panel believes this mortgage rate trend will stick around.  Home sales are slowing, warnings continue about over leveraged consumers and bond yields have dropped.  As the demand for mortgages continues to soften, expect to see enhanced competition from lenders for new customers.

Variable mortgage rates: Unchanged

It was no surprise that the Bank of Canada held its key overnight lending rate at 1 per cent at their last meeting on May 31st.  Our Panel believes we might be in for a few months of inactivity from the Governor before we see another increase.

Although Canada’s economic performance warrants higher interest rates, if we make a move ahead of the pack we’ll risk a spike in the Canadian Dollar and a negative impact on manufacturing and exports in general.  So as the US and Europe struggle with unemployment, sluggish recovery and debt, Canada will sit and wait for the right time to move.

To read all the detailed commentary from our panel members, please visit:

http://www.ratesupermarket.ca/mortgage_rate_outlook_panel/

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:

-      Dan Eisner, MBA. AMP. President,  Verico True North Mortgage

-      Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University

-      Elisseos Iriotakis, President, SAFEBRIDGE Financial

-      George Hugh, President, Taurus Mortgage Capital

-      Mark Kocaurek, Senior Vice President, Treasury & Lending (Chief Lending Officer) of ING DIRECT Canada

About RateSupermarket.ca (www.ratesupermarket.ca)

RateSupermarket.ca is the largest independent and 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 rates.  Over 1M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.