Increases to Mortgage Rates Approaching Fast

RateSupermarket.ca’s Expert Panel Believes Rates will Start to Increase in July

TORONTO, May 13, 2011… RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates and credit cards, has announced the results from their Mortgage Rate Outlook Panel for May 2011.

Despite overwhelming pressure for mortgage rates to increase, the panel of mortgage industry experts believe the Bank of Canada and mortgage lenders will continue to employ a slow and steady approach to rate hikes.  Don’t expect any movement in the short term, but rate increases are on the horizon.

Fixed mortgage rates: Unchanged

Although we’ve seen a slight dip in bond yields over the past few weeks, national and global economic conditions are improving, encouraging lenders to increase fixed mortgage rates.  However, low demand in the housing market will cause the banks to rethink this approach.  Home borrowers can expect fixed mortgage rates to stay where they are in the short term.

Variable mortgage rates: Unchanged

Our strong loonie is reason enough for the Bank of Canada to hold off on increasing interest rates, despite the jump in inflation, when they meet later this month.  The experts are calling for level variable mortgage rates until July, but caution that discounts on Prime might get squeezed in the near future.

To read all the detailed commentary from our panel members, please visit:

http://www.ratesupermarket.ca/mortgages/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, President, Taurus Mortgage Capital, and former Vice President, Treasury, ING DIRECT

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 GICs.

Related Topics

Mortgage News / Mortgage Rate Outlook Panel / Mortgages

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