Canadian Mortgage Rates at the End of 2012

Just like other business areas, the housing market has also been affected by the changing economic conditions of the world. Many financial and economic experts have predicted that, though the Canadian economy will experience a downfall in the beginning of 2012 it will show signs of improvement by mid-year and gain momentum by the end. Here’s what’s in store for you.

Though the interest rates will be low throughout the year, some say that the economy may rise in the southern part. However, many other stick to the fact that it won’t see a rise even by 1% until the next year. This means that you can enjoy low and cheap mortgage rates for some more time, till the time the world’s economy gets completely stabilized.   

As predicted, once the economy starts rising either by the end of 2012 or at commence of 2013, it will keep going up steadily and slowly by 1% or 3%. This pattern will continue till the end of 2013. With low bond yield, the Department of Finance is trying out all possible strategies in order to stem the household debt levels. It is for this reason that, the government has also summoned the banks against lowering their rates so that they can pay off some debt. This may be a bad news for all those who are either first time home buyers or are planning to take out a loan against their residential property.

The lenders are firm about a little bit of drop in the fixed rate mortgage. Even the variable rate mortgage will remain almost the same thus supporting the lenders in continuing with their fixed rates.