RateSupermarket.ca Panel Finds New CMHC Risk Fees Won't Affect December
TORONTO, Dec. 4, 2013 /CNW/ - It may be the off season for the housing
market, but shoppers have good reason to turn their attention from the
malls to their local real estate offerings; the cost of borrowing will
remain historically cheap for the month of December. Despite the most recent round of measures implemented to cool demand, fixed rates will see slight discounting
this month; bond yields remain low amid slow but stable economic
improvement, both in Canada and internationally. However, such gains
are still below growth benchmarks, leading to no change in the Bank of
Canada's rate stance, and as a result, variable borrowing costs.
Fixed Mortgage Rates: Down: Government of Canada bond yields continue to see slight downward
pressure, as investors remain confident that national benchmark rates
will remain low. Market fluctuation as a result of U.S. monetary policy has also subsided, as the Fed appears to have deferred any changes to
quantitative easing until the new year. As well, new government-imposed
risk fees to the CMHC are not anticipated to have adverse effects on
the availability of mortgage insurance in the near future. As a result,
fixed mortgage rates will see slight discounting this month.
Variable Mortgage Rates: Unchanged: An increase to the Bank of Canada benchmark rate is not anticipated
prior to late 2014, as sufficient slack remains in economic output to
allow the rate to remain at its current one per cent.
This month's panel members:
Ron Butler, Mortgage Broker, Verico Butler Mortgage
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 3 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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Image with caption: "RateSupermarket.ca (CNW Group/RateSupermarket.ca)". Image available at: http://photos.newswire.ca/images/download/20131204_C7663_PHOTO_EN_34454.jpg
For further information:
Kelvin Mangaroo, RateSupermarket.ca