Many Canadians were able to buy or refinance a home at historically low rates, making home ownership more affordable. The recent low rates were a major factor in driving sales in the Canadian real estate market. However, with the economic recovery, the Canada mortgage rates are expected to rise. The question is how much and how fast?Experts at Canadian banks have made their predictions for interest rates through the end of 2011. The general consensus is that both variable and fixed interest rates will rise. The rates are tied to the overnight rate, which some banks, like the CIBC, believe will rise to 2.5% by the end of next year. The Toronto Dominion bank and the Royal Bank of Canada predict the rate will go even higher – up to 3.5%. By the end of 2011, many borrowers with good credit will be looking at mortgage rates of 5.5% or more.
With added housing inventory, the real estate market is coming into more of a balanced situation. Homes are expected to sell at good prices, not but at the records we were seeing the first half of 2010. This means there may be more housing bargains to be found.
Before you start shopping for your next home, call the experts at Mortgage Medics. With one simple online application, the Mortgage Medic team can tap into the best Canada mortgage rates from banks, trust companies, financial companies, credit unions and even private lenders. Mortgage Medics shops your mortgage to get you the best deal for your needs. We can pre-qualify you and lock in your mortgage rate for up to 120 days while you shop for a home. We work for you – not the bank – so call us today.
