RateSupermarket.ca’s Expert Mortgage Rate Outlook Panel Thinks They Can

TORONTO, Dec 2, 2011… With fixed mortgage rates near historic lows in Canada, one might think they can’t possibly get any lower.   Wrong.  According to RateSupermarket.ca’s Mortgage Rate Outlook Panel for December 2011, we may see fixed mortgage rates decrease in the short term.

The panel also believes that variable mortgage rates will stay at current levels given that no change is expected in the upcoming Bank of Canada rate announcement on December 6^th.

Fixed mortgage rates: Down

With no quick fix on the horizon for the European debt crisis, the global economic outlook continues to be pessimistic causing downward pressure on longer term bond yields.  Couple this with decreased demand for home loans during the busy holiday season, and it is likely that fixed mortgage rates will stay low or even drop further over the next 30-45 days.

Variable mortgage rates: Unchanged

Recent GDP numbers were surprisingly strong, inflation is near the target range, and a global economic meltdown could be on our door step. The last thing Governor Mark Carney wants to do is shock consumers during the busy holiday buying season with news of an interest rate increase. As a result, our panel members agree that the Bank of Canada will hold rates steady at their next meeting.

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 DIRECTCanada
• Dr. Ian Lee, Director of MBA Program, SprottSchoolofBusiness,CarletonUniversity
• Dan Eisner, MBA. AMP. President,  Verico True North Mortgage
• Stella Cellucci, 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 mortgage 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.

CAAMP released its fall consumer report today, The Annual State of the Residential Mortgage Market in Canada. So what’s on the horizon for the mortgage market? Here are the top highlights from this quarter’s report.

Canadians are More Likely to Switch Lenders

Canadians have traditionally been oh-so loyal to their banks and it was typical for a consumer to stay with one bank for their entire financial lives. Today things are changing, in fact 21% of borrowers switched lenders when their mortgages were up for renewal this year, up from 12% in 2009.

Variable Mortgage Rates are Becoming More Popular

In the past, it might have all been about “five year fixed” but variable mortgage rates are continuing to gain popularity. 31% of all mortgages in Canada are now variable, and 37% of those who got a mortgage rate in the last 12 months opted for a variable rate.

Other highlights included:

• Borrowers who opted for a five year fixed rate, received a discount of 1.46 per cent on average
• Over 1 in 4 borrowers used a Mortgage Broker
• The majority of Canadians believe that other Canadians have taken on too much debt or have bought homes they can’t afford – but that they themselves are responsible.
• The average interest rate for home owners’ is 3.92%, a decrease from 4.22% last year
• 36% of mortgage holders have made lump sum payments in the past year

What do you think about the report? What do you think is on the horizon in the mortgage market?

For our latest outlook on the mortgage market, read: Mortgage Rate Outlook Panel >

You can click onthe links above to see those mortgage rates and their details, or go and compare the best mortgage rates in Canada.