The following is an excerpt of an article written by VERICO’s Economic Consultant Michael Campbell and published on the VERICO blog.
There is no pressure in Canada to raise rates says VERICO Economist, Michael Campbell.
“While 3rd quarter economic growth was good, the recovery in energy in the aftermath of production cuts due to the Fort McMurray fires played a huge part. After consistently revising their economic growth forecasts downward for the past four years, most financial institutions are predicting in the neighbourhood of 2 ½% growth in 2017,” says Mr. Campbell.
“Bank of Canada Chair, Stephen Poloz has been dropping broad hints that there is no rate hike until 2018 at the earliest. In fact, he hinted last week that a rate cut was still on the table. But as we’ve seen in the last month that doesn’t mean that mortgage rates remain unchanged. Mortgage rates are being influenced by the increase in bond yields and the reduction in competition from non-bank lenders in the aftermath of the new mortgage rules,” adds Mr. Campbell.
If you are in the market for a new home purchase or need to renew your mortgage, contact me to find out how raising rates will impact you. As a mortgage professional, I can help you develop money saving strategies that will save you more over the lifetime of your mortgage.