TORONTO, ONTARIO--(Marketwire - Dec 10, 2012) - December is a month of surprises, but that won''t extend to changing mortgage rates this holiday season. Uncertainty regarding European fiscal growth lingers, and Canadian bond yields have remained consistent, leading to no change in fixed mortgage rates. Variable mortgage rates are also stable, due to slower than expected economic growth and the Bank of Canada keeping the Overnight Lending Rate at one per cent in the December 4th Rate Announcement.
Fixed Mortgage Rates: Unchanged
Stable Government of Canada bond yields have lead to a neutral interest rate environment. As a new record low of 2.77 per cent was reached early in the month for five year fixed mortgage rates, our experts anticipate rates will hover around the three per cent mark for preferred clients, with no notable change for the month of December.
Variable Mortgage Rates: Unchanged
The Bank of Canada has once again maintained the Overnight Lending Rate target at one per cent, and historically low discounted fixed rates provide consumers with little incentive to choose variable mortgage rates. As Canadian economic growth remains weak, it is not anticipated that variable rates will change in the near future.
About the Mortgage Rate Outlook Panel
The Panel includes some of the country''s top mortgage experts, and helps Canadian consumers make informed decisions by offering a short-term outlook for fixed and variable mortgage rates.
This month''s panel members:
- Dr. Ian Lee, Director of the MBA program at the Sprott School of Business and Chair of the MBA Committee
- Mary Zenar, Mortgage Broker, Zenar Financial
- Dan Eisner, MBA. AMP. President, True North Mortgage
- Elisseos Iriotakis, President, Safebridge Financial
About RateSupermarket.ca (www.ratesupermarket.ca)
Over 2.5 Million Canadians have found their best rate for personal finance products on RateSupermarket.ca. Launched in 2008, RateSupermarket.ca is Canada''s largest and most comprehensive rate comparison site, offering visitors transparent access to the best mortgage rates as well as credit cards, bank accounts, insurance quotes and GIC rates.
- Bank of Canada