Toronto, ON – January 22, 2013: It is indeed a happy New Year for home buyers hoping that the historically low mortgage rates would carry over into 2013. For now, there are still no changes expected for fixed or variable mortgage rates, due to continued global economic unease combined with stimulus provided by the Canadian government. While Government of Canada bond yields have historically increased in the winter months, low mortgage volumes are prompting lenders to keep fixed rates at their historical lows. The Bank of Canada is also not expected to make any changes to the overnight lending rate, keeping variable rates at their current levels.
Fixed Mortgage Rates: Unchanged
While Government of Canada bond yields have seen a recent increase, and are anticipated to continue to rise over the coming month, fixed mortgage rates are not expected to follow suit, as low mortgage volumes and a slowing housing market will prompt lenders to keep mortgage rates at competitive levels to capture market share.
Variable Mortgage Rates: Unchanged
The Bank of Canada is not expected to increase the overnight lending rate in its upcoming rate announcement on January 23rd, nor is an increase anticipated over the next six months. As a result, variable mortgage rates will not change in the foreseeable future.
About the Mortgage Rate Outlook Panel
The Panel includes some of the country’s top mortgage experts, and helps consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates in Canada.
This month’s panel members:
- Dan Eisner, President, True North
- Mark Kocuarek, Senior Vice President, ING DIRECT
- Mary Zenar, Managing Director, Zenar Financial
- Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
To read all the detailed commentary from our Panel Members, please visit:
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