With the Fed expected to increase interest rates by the end of this year, there could be an impact on Canadian government bonds and subsequently some mortgage rates.
Doug Porter, chief economist at BMO Nesbitt Burns, told the Globe and Mail that increased mortgage rates for 5-year fixed-rate loans are a possibility but he says continued low Canadian interest rates together with weak inflation is an indicator of weak economic growth, pressuring job creation and wage increases.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Val Côté, Pine Grove, Kamsack, Parkland, Lac-au-Brochet
Economists are not expecting the Bank of Canada to increase interest rates for some time, probably late 2017 or early 2018; however, for shorter-term mortgages there could be a rise much sooner.