Rates Remain Low – May 2013

Stephen Poloz was appointed Governor of the Bank of Canada to succeed Mark Carney who is leaving June 1, 2013. The BOC has left the overnight rate unchanged for almost 3 years which has been good news for variable rate mortgage holders who signed up for deeply discounted products relative to the prime rate. There is still minimal upward pressure on rates until economic conditions improve.

Over the past couple months, the mortgage market has been relatively stagnant in terms of news, changes and rates. The property market has slowed in most major areas with modest price declines because of the previous government rule changes and general market exhaustion. A lot of buyer’s have been sidelined due to the rule changes so it will be interesting to see what comes next.

Currently, fixed rates (both generally and comparatively speaking) are more attractive for mortgage holders. That being said, everyone’s position is unique and we evaluate deals on a case by case basis.

There are opportunities to lock in to historical low fixed rates depending on where you’re at in you current term, what your rate/product is, and some other factors which we can review.

Talk soon,
Gord, Steve and Jeff

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