No rate increase anticipated by RateSupermarket.ca's expert panel amid lingering stimulus measures
TORONTO, Nov. 7, 2013 /CNW/ - The economy isn't quite ready for the training wheels to come off; that's what is indicated by Canadian and American policy makers who both announced no change to stimulus measures this month.
As a result government bond yields are currently stable, prompting lenders to follow suit with moderate fixed mortgage rate discounting. Variable rates will see no change as the Bank of Canada dropped the expectation of an Overnight Lending Rate increase in the short term.
Fixed Mortgage Rates: Down: Canadian and U.S. bond yields remain low due to assurances that economic stimulus will remain for the longer term in both countries. This will lead to continued downward pressure on yields and as a result, moderate discounts to fixed mortgage rate options.
Variable Mortgage Rates: Unchanged: After dropping any reference to future rising rates in their last announcement, the Bank of Canada signalled that economic progress has been too slow to warrant changing the Prime Rate any time soon. As a result, there won't be any change to the variable cost of borrowing in the near future.
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 University
● Kelvin Mangaroo, President, RateSupermarket.ca
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.
Image with caption: "National Interest And Mortgage Rates To Remain Low Through November. (CNW Group/RateSupermarket.ca)". Image available at: http://photos.newswire.ca/images/download/20131107_C5323_PHOTO_EN_33108.jpg
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