Could Fixed Mortgage Rates In Canada Be On The Rise?

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Could Fixed Mortgage Rates In Canada Be On The
Rise?
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• With the recent announcement of a new and
  effective vaccine on the horizon, bond yields in
  Canada and the U.S. are hovering right around
  0.50, the first time theyve done so since the
  beginning of June. Bond yields lead fixed
  mortgage rates, causing some to suggest that
  mortgage rates could be finding a bottom and may
  only get higher from now on in. With the profit
  margins of lenders already exceptionally tight,
  rising yields are doing nothing to help and are
  in fact, tightening their margins even more. Some
  within the industry have observed that if yields
  continue to rise, banks will waste no time taking
  their fixed rates with them. That said, experts
  predict that the future is bright where the
  housing market and mortgage rates are concerned,
  and that 2021 will be all about recovery.

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• Can mortgage rates get any lower?
• Should the final phases of approval for a
  covid-19 vaccine fall through, then mortgage
  rates may well fall even lower, but experts
  predict that this would be the only event that
  could possibly have such a dramatic effect. That
  said, fixed rates could still move up over the
  coming year the situation as a whole is hard to
  predict, and positive developments for the
  vaccine will probably lead only to a short-term
  spike.

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• Are long-term trends still there?
• With so much debt, the economy is still
  struggling and cant support higher interest
  rates long-term trends are still there and
  higher 5-year fixed rates for the upcoming years,
  are not expected, according to experts.
• What mortgage shoppers should know
• All the talk about rising rates has naturally
  made those seeking to borrow money to purchase a
  property, more than a little nervous, but the
  advice from expert mortgage brokers is to seize
  the moment and lock in a rate now if youre in a
  position to do so.

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• While theres no guarantee that rates will rise
  materially, its safe to say that the risk versus
  the reward, no longer goes in the favor of
  variable mortgage rates.
• If shopping for a mortgage now, try to hold on to
  a variable rate such as 1.45 or less, or pay to
  lock in at under 2. While there are several
  factors that will determine which route you take
  as a mortgage shopper, working closely with a
  qualified and experienced mortgage broker will
  help you make the right choice for your current
  circumstances, while taking the future of the
  economy into account at the same time.

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• Mortgage-broker-Calgary is your best resource for
  finding a mortgage for your property. Luke Wile,
  is mortgage broker in Calgary AB and is proud to
  serve clients from across Canada, while being
  centered in Calgary, Alberta. Luke is proud to
  serve his clients with a personalized approach to
  finding his clients the best and lowest Canadian
  interest rates and terms offered by the major
  banks and private lending institutions. If you
  are looking for a calgary mortgage agent, with
  Luke Wile you can get fast and personal expertise
  for your mortgage!