RateSupermarket.ca’s Expert Mortgage Panel Not Expecting Changes This Month
Toronto, ON – (September 7, 2012): Canadian bond yields saw a rise in August, causing some lenders to follow suit with their fixed mortgage rates. However, while RBC and TD both increased their three-year fixed rates, BMO took a competitive approach and lowered its discounted five-year fixed product. This month, fixed rate levels are expected to remain consistently low as investors are attracted to Government of Canada bonds amidst global economic uncertainty. Variable mortgage rates are also expected to remain constant, as the Bank of Canada maintained its overnight lending rate of 1 per cent in the September 5 announcement.
Fixed Mortgage Rates: Unchanged
August saw some upwards movement as several big bank lenders raised their fixed mortgage rates as a result of higher bond yields. However, this is expected to moderate as Canada remains an investing safe haven amidst global economic uncertainty. Bank of Montreal has also gone against the grain, lowering its five-year fixed rate. Despite this movement, and factoring in stabilizing bond yield levels, our panelists are calling for fixed mortgage rates to remain unchanged this month.
Variable Mortgage Rates: Unchanged
The Bank of Canada announced on September 5 that it will maintain its overnight lending rate at 1 per cent. A number of factors indicate Canada’s economy may experience turbulence in the months to come, and can be attributed to the Bank of Canada’s decision to keep a firm hold on their rate. As a result, variable mortgage rates are to remain consistent for the time being, according to our 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
- Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee.
- 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 2.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.