RateSupermarket.ca expert panel says time is of the essence for deep fixed-rate discounts
It’s been a truly outstanding season for mortgage-rate pricing – and such deep discounts couldn’t last forever. Slightly higher fixed mortgage rates may be around the corner, as lenders adjust to a higher bond yield environment. Meanwhile, the Bank of Canada isn’t expected to make a move on their trend-setting Overnight Lending Rate, meaning a season of stability is in store for variable-rate customers.
Fixed Mortgage Rates: Up
The economic factors that paved the way for the season’s record low rates are experiencing a slight about-face; government of Canada bond yields have been nudged higher as European instability prompts global investors to shed their nationally-backed investments. The change is minimal – about one per cent – but could spur some lenders to ease up on their cut-throat discounting tactics. But, not to fear, home buyers – we’re still in the midst of one of the most competitive mortgage seasons in recent history as big and small lenders alike compete for buyer business.
Variable Mortgage Rates: Unchanged
Despite an uneasy first quarter, and oil’s prolonged decline, the Bank of Canada’s economic stance appears to have stabilized, and remains optimistic for broad recovery in 2016. It’s not expected that they’ll make any move to change the cost of Canadian borrowing in the short term. Variable-rate holders can expect Prime to remain at 2.85 per cent for the time being.
Click here to read this month’s edition of the Mortgage Rate Outlook Panel