No rate increase anticipated by RateSupermarket.ca’s expert panel amid lingering stimulus measures
November 7, 2013: Toronto, Ontario – The economy isn’t quite ready for the training wheels to come off; that’s what is indicated by Canadian and American policy makers who both announced no change to stimulus measures this month.
As a result government bond yields are currently stable, prompting lenders to follow suit with moderate fixed mortgage rate discounting. Variable rates will see no change as the Bank of Canada dropped the expectation of an Overnight Lending Rate increase in the short term.
Fixed Mortgage Rates: Down
Canadian and U.S. bond yields remain low due to assurances that economic stimulus will remain for the longer term in both countries. This will lead to continued downward pressure on yields and as a result, moderate discounts to fixed mortgage rate options.
Variable Mortgage Rates: Unchanged
After dropping any reference to future rising rates in their last announcement, the Bank of Canada signalled that economic progress has been too slow to warrant changing the Prime Rate any time soon. As a result, there won’t be any change to the variable cost of borrowing in the near future.
This month’s panel members:
Ron Butler, Mortgage Broker, Verico Butler Mortgage
Dan Eisner, MBA. AMP. President, True North Mortgage
Dr. Ian Lee, Program Director, Sprott School of Business, Carleton University
Kelvin Mangaroo, President, RateSupermarket.ca
This post is also available in: French