The Case of the Disappearing Variable Mortgage Rate Discounts
RateSupermarket.ca's Expert Panel Expects Higher Variable Mortgage Rates as Discounts Shrink
(firmenpresse) - TORONTO, ONTARIO -- (Marketwire) -- 11/07/11 -- Variable mortgage rate discounts have dropped 45 basis points in under two months, despite no change to Bank of Canada interest rates. The disappearing act isn't over yet, says RateSupermarket.ca's for November 2011.
It's expected that variable rate mortgages could increase as discounts to prime shrink even more in the short term. The Panel also believes will stay constant; lenders are unlikely to make any hasty decisions given the recent job loss numbers for October and the fluctuating bond market.
Fixed mortgage rates: Unchanged
The financial issues in Europe are continuing to affect Canadian bond yields, which have fluctuated by over 50bps in the last month alone. Indecision in Greece and throughout the continent is causing people to flock to the safety of Canadian bonds, driving yields down.
With all this action, our Mortgage Rate Outlook Panel members believe the banks are likely to employ a 'sit and wait' approach, meaning fixed mortgage rates are expected to stay constant in the short term.
Variable mortgage rates: Up
The Bank of Canada made no change to interest rates at their last meeting. This is expected to be the norm well into the New Year as the likelihood of a double-dip recession continues, especially given the recent increase in the unemployment rate. This means won't change anytime soon.
However, our panel members can't say the same about discounts off Prime. Disappearing discounts will continue as banks aim for greater profitability. As a result, the Panel believes Canadians can expect to inch up in the short term.
To read all the detailed commentary from our Panel Members, please visit:
About the Mortgage Rate Outlook Panel
The Panel includes some of the country's top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.
This month's panel members:
About RateSupermarket.ca )
RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency to the Canadian financial market and allows visitors to quickly find the . Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.
Contacts:
RateSupermarket.ca
Kelvin Mangaroo
Cell: 416-844-2931
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 07.11.2011 - 11:57 Uhr
Sprache: Deutsch
News-ID 1054171
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
TORONTO, ONTARIO
Phone:
Kategorie:
Internet
Anmerkungen:
Diese Pressemitteilung wurde bisher 109 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"The Case of the Disappearing Variable Mortgage Rate Discounts
"
steht unter der journalistisch-redaktionellen Verantwortung von
RateSupermarket.ca (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
