TORONTO, August 5, 2011… Canadian fixed mortgage rates are heading to record lows. RateSupermarket.ca, Canada’s mortgage rate comparison website, saw a drop in fixed mortgage rates this week and is expecting the trend to continue.
The 5 year government bond yields have dropped 27% in 2 weeks (12% of that decrease took place yesterday). Bond yields are closely tied to fixed mortgage rates of the same term, so Canadian consumers can expect 5 year fixed mortgage rates to decrease as well.
“The Rate Party isn’t over yet. We’re seeing some of the lowest fixed mortgage rates in the market since the start of the financial crisis in 2008,” says Kelvin Mangaroo, President of RateSupermarket.ca. “The lowest the 5 year fixed rate dropped to was 3.29 percent in November 2010. Today, we’re sitting at 3.36 percent and we expect that to decrease further over the next week.”
But the cheap money isn’t for everyone. With consumer debt levels on the raise, Canadians need to take a good look at their financial situation before jumping into a mortgage they won’t be able to handle when interest rates return to more normal levels.
“Consumers will need to practice restraint with these tempting rates,” added Mangaroo. “Just remember that rates are forecast to increase 2% over the next couple of years, so it’s a good idea to plan for higher future payments when researching your mortgage today.”
About RateSupermarket.ca (http://www.ratesupermarket.ca)
RateSupermarket.ca is the largest rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency into the Canadian financial market and allows visitors to quickly find the best rates. Over 1.5 million Canadians have turned to RateSupermarket.ca to save money on their mortgages, insurance, credit cards, GICs and savings accounts.