Low Mortgage Rates to Stay Even Long After Bank of Canada's Latest Remarks
According to an article featured in the Globe & Mail this past Wednesday the Bank of Canada is shifting their focus from slowing the Canadian housing market to increasing economic growth. The Canadian economy has hit several weak spots lately and inflation is well below target. They see no reason to increase rates and see any increases further in the future and will be modest when they do start to increase. Economists are even saying there's a 30% chance that the Bank of Canada key lending rate could even drop.
All this is good news for borrowers and people who are thinking of jumping into the market. Rates are at rock bottom places and are not going up anytime soon which will keep affordability from deteriorating. In a recent report by RBC Economics affordability in B.C. has actually improved over the last couple months.
With some softening in prices, ultra low rates and the HST disappearing on April 1st for purchases of new homes it may be a time to speak to your mortgage advisor and realtor about purchasing a home or breaking your current mortgage term for a lower rate if it makes sense.
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Tony Marchigiano | Mortgage Specialist - Mortgage Sales BC Region, RBC Royal Bank | Royal Bank of Canada | T. 604-505-7109 | F. 778-737-0054
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