TORONTO, ONTARIO -- (Marketwired) -- 06/11/13 -- It's been warned of for months: after reaching record low levels over the past year, mortgage rates are in for an increase. Canadian bond yields have risen as of late, causing lenders to respond with a hike to fixed mortgage rates. However, variable mortgage rates will maintain the status quo, as instability among Canada's largest trade partners and sluggish domestic economic growth lead to no change for the Bank of Canada's Overnight Lending Rate.
Fixed Mortgage Rates: Up
Government of Canada bond yields, which set the bar for fixed mortgage rates, experienced an increase early in the month. This may prompt lenders to respond by raising their fixed mortgage offerings, however, a dramatic rate hike is unlikely given current competitive market factors.
Variable Mortgage Rates: Unchanged
Canada's economy remains on track to reach capacity, but conditions have not recovered sufficiently to cause change to the current cost of borrowing. It is not anticipated that incoming Bank of Canada governor Stephen Poloz will change the Overnight Lending Rate in the next announcement on July 17, and economists expect such stimulus to remain in effect until 2014.
This month's panel members:
-- Kelvin Mangaroo, President, RateSupermarket.ca-- Dr. Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee-- Mary Zenar, Mortgage Broker, Zenar Financial-- Dan Eisner, MBA. AMP. President, True North Mortgage
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 largest and 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.