RateSupermarket.ca’s Expert Panel Believes Fixed Rates are Heading Lower
TORONTO, August 17, 2011… RateSupermarket.ca, Canada’s go-to website for comparing mortgage rates, credit cards, savings rates and insurance quotes, has announced the results of their latest Mortgage Rate Outlook Panel.
The world was in a frenzy earlier in the month due to the US debt ceiling crisis and continued concerns in Europe. Many Canadians took a hit on their stock portfolios but there is some good news coming out of this turmoil says RateSupermarket.ca `s Mortgage Rate Outlook Panel. They believe fixed mortgages rates are heading lower while variable mortgage rates will remain at current low levels.
Fixed mortgage rates: Down
The benchmark Government bond yield dropped over 40% in the last month, resulting in five year fixed mortgage rates hitting an all time low in August. Couple this with the fact that all major banks have not yet decreased their fixed mortgage rates and the Panel believes that fixed rates will head even lower before summer’s end.
Variable mortgage rates: Unchanged
After the most recent Bank of Canada rate announcement, the guessing game started on when, not if, the federal bank will start increasing interest rates to “normal levels” this year. The past few weeks have changed this thinking and many believe that the Bank’s hands are tied, and now expect a delay in raising rates until 2012.
As variable mortgage rates typically follow the Bank of Canada’s key interest rate, in normal times it would be expected that variable rates would also remain unchanged. Our Panel believes that this is true in the short term, however, they note that mortgage lender`s profitability on variable rates are low, putting upward pricing pressure on variable rate mortgages in the longer term.
To read all the detailed commentary from our panel members, please visit:
About the Mortgage Rate Outlook Panel
The panel includes some of the country’s top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.
This month’s panel members:
- Mark Kocaurek, Senior Vice President, Treasury & Lending (Chief Lending Officer) of ING DIRECT Canada
- Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University
- George Hugh, President, Taurus Mortgage Capital
- Dan Eisner, MBA. AMP. President, Verico True North Mortgage
- Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals
About RateSupermarket.ca (www.ratesupermarket.ca)
RateSupermarket.ca is the largest independent and impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency to the Canadian financial market and allows visitors to quickly find the best rates. Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.