The first signs of autumn may have arrived, but that’s the only fall Canadians will witness in the near future; RateSupermarket.ca’s expert mortgage panel has called for the cost of borrowing to remain unchanged throughout the season.
Lenders will stick to current discounts for fixed-rate mortgages as government bond yields remain consistently low. And, while a freshly-minted recession puts pressure on the Bank of Canada to provide stimulus, it’s expected the central bank will wait for the bigger data picture before cutting rates for the third time this year.
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Fixed Mortgage Rates: Unchanged
As Chinese market volatility causes pain for equities around the globe, government of Canada bonds continue to be ranked among the safest of investments. Continued interest has kept yields sub-1 per cent, and firmly within a 30-basis point range. Fixed-rate mortgage borrowers will continue to access rock-bottom rates, as low as 2.39 per cent for a five-year fixed term.
Variable Mortgage Rates: Unchanged
Will they or won’t they? Speculation over the Bank of Canada’s next move has reached fever pitch. However, the central bank is likely to leave them guessing, as recent promising economic data buys the Bank some time before implementing further monetary policy cuts. Variable mortgage rates are expected to remain unchanged over the coming month.
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