How will the high $Canadian dollar affect mortgage rates?
The Canadian dollar is just about at par with the U.S. dollar… The BMO Economist sums it up well when he says “Generally speaking, from a stronger currency, consumers win and producers lose.” As quoted in the Vancouver Sun.
And a high Canadian dollar means the Bank of Canada is less likely to increase the Target Rate which affects Variable Rates… Any move by the Bank of Canada upwards will only drive the Canadian dollar higher…
A high Canadian dollar hurts our exports as they become more expensive for other countries to buy… and we will probably see more cross border shopping as our strong $CAD will have more buying power…
Bottom line is that Variable Rates appear to be safe for now… enjoy the low rates…
Categories
Interest rates, Mortgage News, Mortgage Trends, Rate forecast
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.