Higher Rates? – Not Yet!
Bank of Canada held their benchmark overnight rate steady at 1.0%. With continued global uncertainties, the Bank has been cautious about moving forward with further rate hikes. These will come eventually and possibly as soon as July 2011. The Canadian economy has been improving, but there is relectance by Government to constrain that growth.
Other financial institutions set their prime rates and other mortgage rates relative to this benchmark rate. Thus, we should see stability in the current rates and even a slight decline, as we now know the Bank of Canada rate will not be increasing for the next few months.
In order to keep a lid on the real estate market, the rules for obtaining a mortgage were tightened recently, to ensure Canadians will have the capacity to afford their mortgages in the future, when rates are higher.
Are you looking for the best mortgage rates in Etobicoke? Ask for a referral to a leading mortgage broker.