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Fixed Mortgage Rates on The Rise?

Posted on October 11, 2007 at 11:38 am 
Filed Under Mortgage Planning

Based on employment data released a week ago today stating that Canada’s jobless rate is at levels not seen in decades, there has been increasing market pressure to increase interest rates on Fixed Term Mortgages. Some of the major banks, specifically TD and HSBC to name a couple, have already begun to increase their posted rates by approximately 25 basis points on their five year fixed rate. 

The new jobless levels have renewed fears of inflation, and investors who thought the Bank of Canada would be either decreasing rates or remaining neutral, now believe the Bank of Canada might be considering an interest rate increase to keep inflation in check. This possible rate hike is by no means fact at this point, but all signs at least point toward the possibility of fixed rates being raised across the Country.  Next Tuesday’s meeting by the Bank of Canada will shed more light on the direction of variable rate products and the Prime rate specifically.

Your Take-Away: With five year rates being in around the 5.79% area, it would be prudent to at least obtain a pre-approval if you are looking to buy or refinance within the next six months.  Don’t forget that a pre-approval is in no way binding and there are no fees or charges incurred if you decide not to move forward.

Enjoy the ride!

Elisseos

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One Response to “Fixed Mortgage Rates on The Rise?”

  1. mortgage loans » Fixed Mortgage Rates on The Rise on October 24th, 2007 1:29 pm

    […] admin wrote an interesting post today onHere’s a quick excerptWe’re back, and fixed mortgage rates could be on the rise! There is currently extreme market pressure to increase interest rates on Fixed Rate Mortgages. Some of the major banks have already begun to increase posted rates by … […]

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