As suspected rates have held steady this morning, meaning no change to variable rate mortgages or lines of credit with the current payments. Fixed interest rates (which are tied to the bond market) have been on the rise over the last week on average 30 basis points. With a strong Canadian dollar, low inflation levels and an election imminent, it’s almost certain that the Bank of Canada will wait until later in the year to raise interest rates. While time is taken to digest the results of the election, watch for variable rate mortgages to remain mostly unchanged during this period.
An anticipated increase in Government of Canada bond yields due to improving economic conditions and higher inflation should eventually lead to higher fixed rates by the end of the year. Vist our "Mortgage Broker" page for more information !