The next Bank of Canada meeting is in May. The market is not expecting a rate increase. After that the next meeting will be in July.
Guaranteed lowest mortgage rates, call Robert Clancy today: (416) 899-1467
- robert@SafebridgeFinancial.com
By: Robert Clancy
Lower inflation in February likely to keep interest rates low
Canada’s annual inflation rate fell slightly in February, giving the Bank of Canada room to keep interest rates low over the next few months, economists say.
Statistics Canada said Friday its consumer price index edged down one-tenth of a point to 2.2 per cent in February, with rising energy and gas prices keeping inflation just above the Bank of Canada’s ideal two per cent target.
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By: Robert Clancy
Mortgage fixed rates edge lower
Mortgage fixed rates edged lower yesterday with the averaging 5 year fixed dropping from 4.04% to 3.94%. With the variable mortgage holding steady at 2.30%, this is good news for home buyers entering the Spring real estate market.
By: Robert Clancy
Housing Starts Trend Higher
Report form CMHC
Housing starts will be in the range of 157,300 to 192,900 units in 2011, with a point forecast of 177,600 units. In 2012, housing starts will be in the range of 154,600 to 211,200 units, with a point forecast of 183,800 units.
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By: Robert Clancy
New Mortgage Rule which take place on March 18th
- Mortgage amortization periods will be reduced from 35 years to 30 years.
- The maximum amount Canadians can borrow to refinance their mortgages will be lowered from 90 per cent to 85 per cent of the value of their homes.
- The government will withdraw its insurance backing on lines of credit secured on homes, such as home equity lines of credit. (Effective April 18th, 2011)
By: Robert Clancy
Current fixed rate increase makes variable rate more appealing
Mortgage lenders increased fixed mortgage rates by roughly .20% this week. This was expected with the Bond yields moving up last week. Over the past year fixed mortgage rates have fluctuated up and down by roughly .80% from 3.79% to 4.59% but overall remained flat i.e. the trend has not changed. The question that everyone is asking now, is the trend finally breaking into a upward trend in both fixed and the variable lending rate. This remains to be seen. Just as we think the trend is breaking and moving up we get a bad piece of economic news which corrects the trend.
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