RateSupermarket.ca’s Expert Mortgage Panel anticipates stable conditions for Spring
May 8, 2013 – Toronto, ON: Spring may be in full force, but no hot growth is anticipated for fixed and variable mortgage rates. As bond yields remain low, and the Department of Finance continues efforts to stem household debt levels, lenders are not likely to challenge the status quo with a dramatic fixed mortgage rate drop. Variable mortgage rates are to remain the same as there was no change announced in the last Overnight Lending Rate announcement, and none anticipated for the foreseeable future.
Fixed Mortgage Rates: Unchanged
As mortgage rates remain the focus of government efforts to minimize household debt levels, and Finance Minister Jim Flaherty cautions banks against excessively lowering their offerings, it’s unlikely that fixed mortgage rates will see a dramatic drop over the coming month. While bond yields have seen a modest increase, investors continue to regard Canada as a safe haven amidst international economic upheaval, and bond yields remain generally low in turn.
Variable Mortgage Rates: Unchanged
With such a narrow spread between the lowest fixed and variable mortgage rate options, many consumers are choosing to lock in for their mortgage terms, prompting lenders to focus on their fixed offerings. It is also not anticipated that the Bank of Canada will increase the Overnight lending rate in the upcoming May 29 announcement, which is outgoing governor Mark Carney’s last.
May Panel Members
Dr. Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee
Mary Zenar, Mortgage Broker, Zenar Financial
Dan Eisner, MBA. AMP. President, True North Mortgage
Elisseos Iriotakis, President, Safebridge Financial
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