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Lower Fixed Mortgage Rates Expected as Lenders Fight for BusinessRateSupermarket.ca's Expert Panel Believes Fixed Mortgage Rates Will Decrease as Competition Heats Up (January 09, 2012)
TORONTO, ONTARIO -- (Marketwire) -- 01/09/12 -- Canadian consumers could see lower fixed mortgage rates this month as competition heats up and lenders look to build their mortgage pipeline for the year, says RateSupermarket.ca's Mortgage Rate Outlook Panel for January 2012.
Lenders are eager to get a good start to the new year and build up their fixed mortgage rate client base, which means fixed rates could decrease as competition picks up. Variable mortgage rates, on the other hand, are expected to remain level.
Fixed mortgage rates: Down
Given the forecast for slow growth in 2012 and the ongoing European sovereign debt crisis, Canadian bond yields are expected to stay where they are; which is a strong indication that fixed mortgage rates should remain unchanged in the short term.
However, our panel of mortgage experts is not ruling out a slight reduction in fixed mortgage rates as lenders get a jump start on the year and build their pipeline for 2012.
Variable mortgage rates: Unchanged
The next Bank of Canada interest rate announcement will take place on January 17th, 2012. Our panel of mortgage experts is not expecting any change in the key overnight lending rate for at least the next 6 months due to ongoing turmoil in the global economy. It is also unlikely that lenders will increase or decrease their discounts to prime rates in the short term. As a result, Canadian consumers can expect variable mortgage rates to remain where they are.
To read all the detailed commentary from our Panel Members, please visit:
About the Mortgage Rate Outlook Panel
The Panel includes some of the country's top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.
This month's panel members:
-- Mark Kocaurek, Senior Vice President, Treasury & Lending (Chief Lending Officer) of ING DIRECT Canada -- Dr. Ian Lee, Director of MBA Program, Sprott School of Business, Carleton University -- Dan Eisner, MBA. AMP. President, Verico True North Mortgage -- Elisseos Iriotakis, President, Safebridge Financial Group -- Wayne Spinney, Mortgage Agent, Centum Mortgage Professionals
About RateSupermarket.ca (www.ratesupermarket.ca)
RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency to the Canadian financial market and allows visitors to quickly find the best mortgage rates. Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.
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