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
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
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
● Kelvin Mangaroo, President, RateSupermarket.ca
Click here to read the full Mortgage Rate Outlook Panel.
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.
For further information:
Kelvin Mangaroo, RateSupermarket.ca