Oct
27
New homeowners have different options as of October 15 and the new rules put in place by the federal government. Under the new rules homeowners need 5% as a down payment. This can come in the form of their personal savings or a gift from a family member. The maximum amortization is 35 years from the 40 years previously. Most new home owners are looking at having a cosignor to help with the qualification.
Canadian mortgage rates are directly affected by the actions of the Bank of Canada. By monitoring the interest rate on bonds issued by the Bank, anyone can get an indication of interest rate directions. The bond market is essentially a reflection of investors’ interest rate expectation for the future of the Canadian economy.
Purchasers who do their homework know that bond rates have been declining. The decline in bond rates results in lower interest rates on mortgages in Canada. The Bank of Canada has backed away from increasing rates due to recent unrest in the market. However, there is speculation the Bank of Canada may slightly raise interest rates in the coming months, but time will tell.
For any of your mortgage needs please contact Michael Grabmuller at michael.grabmuller@td.com
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One Response to “Future of Canadian Interest Rates and Bond Rates”
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The Chamberlain Group
Hi Jared,
Excellent blog.- Tried emailing you but get an error every time In response to the link exchange:
Your link is up, please let me know where I can find the reciprocal link.
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Thanks and take care
Deyanira