No May Day For Spring Mortgage Rates
Stable bond yields and central bank doubts lead to stability for fixed and variable options
TORONTO, May 8, 2014 /CNW/ - May will bring flowers - but there's no growth in store for the Canadian cost of borrowing. Stable bond yields and a competitive spring market lead to status quo for fixed mortgage rates in the short term. Variable mortgage rates, however, aren't to change until 2016 as exports and inflation remain below the Bank of Canada's forecast.
Fixed Mortgage Rates: Unchanged: The busy spring buying season is in full swing, prompting lenders to stay competitive with their rates, as Canadian buyers snap up homes in droves. This is supported by stability among government bond yields, which have not fluctuated enough to warrant any pressure placed on fixed rates in the short term.
Variable Mortgage Rates: Unchanged: Central interest rates won't rise until 2016, according to the Bank of Canada's top man himself, Stephen Poloz. Lower-than-expected export activity and steep retail competition continue to depress inflation growth, the required driver behind a potential rate rise. Lowering rates isn't likely, as the Bank feels credit is cheap enough - household debt levels continue to grow amid such accessible borrowing costs.
This month's panel members:
● Ron Butler, Mortgage Broker, Verico Butler Mortgage
● Will Dunning, Chief Economist, CAAMP; President, Will Dunning Inc.
● Dan Eisner, MBA. AMP. President, True North Mortgage
● Dr. Ian Lee, Program Director, Sprott School of Business, Carleton University
● Kelvin Mangaroo, President, RateSupermarket.ca
About RateSupermarket.ca ( www.ratesupermarket.ca )
Over 7 million Canadians have found their best rate for personal finance products on RateSupermarket.ca. Launched in 2008, RateSupermarket.ca is Canada's most comprehensive rate comparison site, offering visitors transparent access to the best mortgage rates as well as credit cards, bank accounts, insurance quotes and GIC rates.
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