Mortgage Rate Forecast in Canada
Here’s a recent article forecasting low rates that appeared in The Globe and Mail. The article points to Scotiabank’s Economist as saying “the economy has lost considerable momentum.”
Scotiabank is also forecasting the Bank of Canada to keep the Target Rate or the Overnight Rate flat until the 3rd quarter of 2011. This means the Variable rate should remain a good option with rates between 2.25% to 2.30%.
Current Bond yields are at 1.94% as of today…. this means the fixed rate spread is 1.65%.. this is above the normal 1.25% to 1.40%…
Fixed rates are priced closely to the Bond market but indirectly by the Bank of Canada’s actions… we are seeing 5 year fixed rates (the benchmark for fixed rates) hovering at 3.59% to 3.69%… and they could still go lower…
Enjoy the low rates… borrow wisely!
Steve Garganis View All
As an industry insider, Steve will share info that the BANKS don't want you to know. Steve has appeared on TV's Global Morning News, CBC's "Our Toronto" and The Real Life TV show. He's also been quoted in several newspapers such as the Globe and Mail, The Toronto Star, The Vancouver Sun, The Star Phoenix, etc.
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