TORONTO, ONTARIO — (Marketwire) — 09/07/12 — Canadian bond yields saw a rise in August, causing some lenders to follow suit with their fixed mortgage rates. However, while RBC and TD both increased their three-year fixed rates, BMO took a competitive approach and lowered its discounted five-year fixed product. This month, fixed rate levels are expected to remain consistently low as investors are attracted to Government of Canada bonds amidst global economic uncertainty. Variable are also expected to remain constant, as the Bank of Canada maintained its overnight lending rate of 1 per cent in the September 5 announcement.
: Unchanged
August saw some upwards movement as several big bank lenders raised their fixed mortgage rates as a result of higher bond yields. However, this is expected to moderate as Canada remains an investing safe haven amidst global economic uncertainty. has also gone against the grain, lowering its five-year fixed rate. Despite this movement, and factoring in stabilizing bond yield levels, our panelists are calling for fixed mortgage rates to remain unchanged this month.
: Unchanged
The Bank of Canada announced on September 5 that it will maintain its overnight lending rate at 1 per cent. A number of factors indicate Canada-s economy may experience turbulence in the months to come, and can be attributed to the Bank of Canada-s decision to keep a firm hold on their rate. As a result, variable mortgage rates are to remain consistent for the time being, according to our panel.
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.
This month-s panel members:
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