RateSupermarket.ca’s panel of financial gurus believes this is just the beginning of mortgage rate hikes
TORONTO, April 8, 2010… RateSupermarket.ca, Canada’s rate comparison website for personal finance products such as mortgages, insurance, credit cards and GICs has announced the results of their Mortgage Rate Outlook Panel for April 2010.
Fixed rates: Up
The panel believes fixed mortgage rates will continue to rise during April. Bond yields could move higher in anticipation of the revised Monetary Policy Report which will be published at the end of the month, putting upward pressure on fixed mortgage rates. However, the reality is that many mortgage lenders are still looking to gain market share so don’t expect to see the same drastic rate increases that hit the mortgage market at the beginning of last week.
Variable rates: Unchanged
Our expert panel believes that variable mortgage rates should stabilize around their current levels for the rest of April. They believe lenders are still happy lending at current variable rates, until the Bank of Canada makes a move and increases their key lending rate.
However, the Panel warns that the Bank of Canada could start increasing interest rates as early as May, most likely resulting in higher variable mortgage rates beginning next month. Now that the dollar has risen to par, the first rate increase may well be tempered, and left to less than 50 basis points. So we should expect to see a slow and steady rise in variable rates over the coming months.
To read detailed commentary from our panel members, please visit: Mortgage Rate Panel Outlook
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
- George Hugh, Vice President, Treasury, ING DIRECT
- Gregory Klump, Chief Economist, Canadian Real Estate Association (CREA)
- Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
- Garth Turner, Noted Canadian Author, Columnist, Speaker and Financial Commentator, Former MP
RateSupermarket.ca is an independent, impartial resource that is not affiliated with any mortgage lender or broker. It is the only resource in Canada that allows visitors to compare the whole mortgage market in the country. RateSupermarket.ca also compares insurance products, credit cards and GIC rates.