Stability for Spring mortgage rates

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May will bring flowers - but there's no growth in store for the Canadian cost of borrowing, according to RateSupermarket.ca’s monthly panel of mortgage experts.

Brokers can expect a busy spring, with 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 Canada's forecast.

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 Canada's forecast.

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 costs.

 
  • Angela Wong-Liao - Invis Inc on 2014-05-12 12:11:59 PM

    Extension of low interest rate is good news for the broker channel and our clients.

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