Mortgage Discounts to Last Through Summer's Dog Days
A 2014-low in bond yields sets the stage for competitive pricing among lenders
TORONTO, Aug. 11, 2014 /CNW/ - Summer may be winding to a close, but Canadians can expect to savour record-low mortgage rate pricing along with lingering plus temperatures and long daylight hours.
Fixed-rate mortgages will remain on their discounted trend, as low bond yield levels give lenders the ability to competitively price their offerings. Variable mortgage rate borrowers can also sleep tight, as the Bank of Canada maintains the Prime rate will not be changed until 2016.
Fixed Mortgage Rates: Unchanged: Government of Canada bond yields are trending at a 2014-record low, between the 1.40 and 1.50 per cent range, leaving lenders the slack they need to continue the sub-three per cent discounting trend.
Variable Mortgage Rates: Unchanged: A surprisingly high $1.8-billion trade surplus has sparked speculation that Canada may be on the path to achieving growth benchmarks - however, raising rates now would only reverse the economic leeway provided by the low loonie. It appears the Bank of Canada is adhering to its 2016 growth forecasts, leaving variable rates untouched for the summer.
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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Penelope Graham, RateSupermarket.ca
p: 416-551-9445 ext 515