What are mortgage experts saying for the month of October? Fixed mortgage rates are in for a dip as investors seek out safe haven government of Canada bonds, while variable rates are staying put; there has been too little economic growth to warrant a Bank of Canada interest rate change.
Recent mortgage market changes could lead to higher mortgage rates, according to RateSupermarket.ca’s expert panel.
Canada’s economic stance is one of caution, as risk of a recession looms globally and action pends on the U.S. fiscal cliff. As a result, there is no anticipated end to stimulus efforts on the home front, with mortgage rates remaining unchanged for the coming month.
RateSupermarket.ca’s Expert Mortgage Panel Expects Moderate Increases to Fixed Mortgage Rates and Level Variable Rates Heading Into Spring. With the spring real estate season on the horizon and historically low interest rates, the debate on the minds of those preparing for a mortgage is Fixed vs. Variable. Although the Fed has promised to keep their interest rates constant until 2013, in Canada several factors can impact rate fluctuations, though in this market, likely not significantly.
This rate is worth it’s own blog post! Currently on RateSupermarket.ca you can get a 5 year fixed mortgage rate for only 2.99%. Yes you heard right, 2.99%! The offer is only available to Ontario residents and comes with a 21 day rate hold. It also allows for 20% annual lump sum payments and a 20% increase on your monthly payments – two features that allow you pay off your mortgage faster and save loads on interest.
The interest rate announcement earlier today confirmed what many were expecting, the Bank of Canada will maintain the key overnight lending rate. The overnight rate continues to sit at 1 per cent, the Bank Rate is 1 1/4 per cent and the deposit rate is 3/4 per cent. This announcement mirrors the thoughts of our Mortgage Rate Outlook Panel and means that variable mortgage rates will remain unchanged.
RateSupermarket.ca has announced the results from their Mortgage Rate Outlook Panel for March 2011. The short term outlook for fixed mortgage rates is unclear with the Panel expressing conflicting views, but the resulting consensus is unchanged. Homeowners can also expect low variable mortgage rates to continue in the short term, while the long term outlook is a slow and steady increase set to begin around the middle of 2011.
Despite Canada’s economic recovery, the experts believe our growth is hindered by the slow-moving US and Global markets, which means that interest rate increases are likely to be delayed as we wait for the rest of the world to play catch-up.
RateSupermarket.ca’s panel of mortgage experts believe Canadians will enjoy low fixed and variable mortgage rates for the month of December and into the New Year.