Homeowners Get Early Christmas Gift with Continued Low Mortgage Rates

Christmas gift for homeowners

RateSupermarket.ca’s panel of experts are calling for low mortgage rates throughout December.

TORONTO, December 6, 2010… RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates, has announced the results from their Mortgage Rate Outlook Panel for December 2010.

The experts believe Canadians will enjoy low fixed and variable mortgage rates for the month of December and into the New Year.

Fixed mortgage rates: Unchanged

Although the Canadian economy is recovering, our growth is still greatly affected by the US. As long as the recovery of our key trading partner continues to lag, we can expect stunted growth on this side of the border. Economic concerns in Europe are still prevalent, consumer spending is expected to weaken due to high debt loads, and inflation should remain flat. These indicators suggest that bond yields, despite their recent increase, are set to level off meaning fixed mortgage rates will remain unchanged.

Variable mortgage rates: Unchanged

Don’t expect the government to take the wind out of the consumer spending sails over the Christmas holidays by increasing interest rates. Until we see sustained economic recovery in the US, Canadians should expect the Prime Rate to stay where it is and only increase gradually over the next couple of years. Expectations for economic growth have also softened giving the Bank even more reason to hold off on a rate increase in December and well into 2011, meaning variable mortgage rates will remain level.

To read all the detailed commentary from our panel members, please visit: 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, Vice President, Treasury, ING DIRECT
  • Gregory Klump, Chief Economist, Canadian Real Estate Association (CREA)

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 GIC rates.

Related Topics

Mortgage News / Mortgage Rate Outlook Panel / Mortgages

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