Further Mortgage Rate Increases on the Horizon

RateSupermarket.ca's panel of financial experts believe variable mortgage rates will increase in June

TORONTO, May 6 /CNW/ - RateSupermarket.ca, Canada's rate comparison website for personal finance products such as mortgages, insurance, credit cards and GICs has announced the results of their Mortgage Rate Outlook Panel for May 2010.

Fixed rates: Unchanged

Fixed mortgage rates increased quickly last month due to higher Government of Canada bond yields, with the benchmark posted 5 year fixed mortgage rate up by 1%. The Panel believes fixed mortgage rates are done climbing in the short term, as concerns in the European markets about Greece have begun to impact the global financial markets, and there has been a recent drop in bond yields.

Variable rates: Up

The Bank of Canada removed their conditional commitment to keep interest rates at all time lows until July, opening the door to speculation on whether interest rates will begin increasing in June or July. Economic indicators to be published later this month will help determine the Bank's decision.

The majority of the Panel members believe variable mortgage rates will start increasing in June rather than July.

To read detailed commentary from our panel members, please visit: www.ratesupermarket.ca/mortgage_rate_outlook_panel/

About the Mortgage Rate Outlook Panel

The panel includes some of the country's top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.

    This month's panel members:
        -  Dan Eisner, MBA. AMP. President, Verico True North Mortgage
        -  George Hugh, Vice President, Treasury, ING DIRECT
        -  Gregory Klump, Chief Economist, Canadian Real Estate Association
        -  Dr. Ian Lee, Director of MBA Program, Sprott School of Business,
            Carleton University
        -  Garth Turner, Noted Canadian Author, Columnist, Speaker and
            Financial Commentator, Former MP

About RateSupermarket.ca (www.ratesupermarket.ca)

RateSupermarket.ca is an independent, impartial resource that is not affiliated with any mortgage lender or broker. It is the only resource in Canada that allows visitors to compare the whole mortgage market in the country. RateSupermarket.ca also compares insurance products, credit cards and GIC rates.

SOURCE RateSupermarket.ca

For further information: For further information: Kelvin Mangaroo, Ratesupermarket.ca, Cell: (416) 844-2931, Kelvin@RateSupermarket.ca, www.ratesupermarket.ca

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