TORONTO, ONTARIO--(Marketwired - Jan. 9, 2014) - The new year is off to a frigid start across Canada, and the same can be said for mortgage rates. While 2014 is anticipated to be a banner year for Canadian economic growth, it's too soon to know when such improvements will be realized - the Bank of Canada is likely to stick with its current monetary policy strategy until real progress is made. While external factors, such as the U.S. taper, are currently having an upward effect on fixed rates, it is unclear what the long term implications will be.
Fixed Mortgage Rates: Up: Fixed mortgage rates are expected to creep moderately higher this month, as bond yields are pushed up by markets reacting to the first installment of the U.S. taper. A seasonally slow winter market suggests lenders may wait until the more active spring season to discount their fixed rate offerings.
Variable Mortgage Rates: Unchanged: Canada's inflation rate remains below expectation, and other growth factors such as exports and business investment fail to improve enough to mend the gap. Until these factors rebound, and until there is sustained economic improvement in the U.S., the Bank of Canada is not anticipated to increase the Overnight Lending Rate.
This month's panel members:
- Ron Butler, Mortgage Broker, Verico Butler Mortgage
- Dan Eisner, MBA. AMP. President, True North Mortgage
- Dr. Ian Lee, Program Director, Sprott School of Business, Carleton University
- Kelvin Mangaroo, President, RateSupermarket.ca
Click here to read the full Mortgage Rate Outlook Panel.
About RateSupermarket.ca (www.ratesupermarket.ca)
Over 3 million Canadians have found their best rate for personal finance products on RateSupermarket.ca. Launched in 2008, RateSupermarket.ca is Canada's most comprehensive rate comparison site, offering visitors transparent access to the best mortgage rates as well as credit cards, bank accounts, insurance quotes and GIC rates.