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Mortgage Rates 2019 – Mortgage Rates Forecast
Bond Yields and Inflation rates are on the move, let’s look at where they are, where they are heading, and how this is going to impact your mortgage interest rate. This is Mat from Canadian Finance, and today, I am going to tell you what the current and future for interest rates.
Let’s start off with interest rates in Canada. I am going to review the most popular rates and terms in Canada, based on the information provided by ratespy.ca one of the better rate comparison websites.
Butler mortgage is currently offering some of the better 5 year variable and 5 year fixed mortgage rates at 2.61% and 2.68% respectively; however, note that with Butler, this is an effective rate meaning that a cash back component may be involved. With many of these discount lenders, there is an element of bait and switch involved where they will list a much lower rate online, then you will actually get.
Make sure to do your homework, and read the fine print when working with a discount brokerage.
Next, if we are looking at mortgages with more than 20% down payment, variable rates start at 2.70% and fixed rates start at 2.83%.
These rates are all valid as of May 15, 2019 in Canada.
Next, let’s talk about mortgage rate forecasts. What are mortgage rates expected to do in short and longer term.
Right now, bond rates have started to level out for the past 2 months. There are a few things that are happening.
1. China/USA trade relations are in negotiations, so this has been negative to the bond yields.
2. Employment numbers and job growth have been building considerably.
This has put bond rates on hold failing to find direction. Bonds where expected to decline this year, but the job growth has put that on hold. Currently, we are waiting to see direction, but nothing concrete has come up. If trade relations improve with USA & China, you could see this move up, but if trade relations fall flat and employment starts to decline, then we could go lower. We will just need to wait and see.
This has been Mat from Canadian Finance, and if you have any questions or concerns, leave them in the comments below and as always, Thanks for watching