Mortgage Rates - Canada

Canada mortgage rates must be quite complex in recent years. The market in Canada is currently governed by various mortgage products, features and technologies themselves.

The role of banks in Canada is very important in the market. According to estimates made ​​at the end of 2004, Canadian banks had $ 368 billion in residential mortgages outstanding, representing 62.1% of the total mortgage market (593 billion).

TheCanadian mortgage market depends on the Bank of Canada, which decides interest rates on a monthly basis.

Mortgage Rates Canada: Who regulates

A government agency of Canada, Canada Mortgage and Housing Corporation (MSC), governs the Canadian mortgage market. CSM ensures that mortgages available to Canadian consumers at low cost. To achieve this goal, CSM offers:

InsuranceLenders in order to protect them in case of failure
Help for homebuyers

Canada mortgage rates, the way forward

In one sentence, the meeting of September 10, 2009, are the Bank of Canada kept interest rates steady at a record low of 0.25%. It can also affirmed the bank's expectations that interest rates remain flat until July 2010, when the inflation outlook remains unchanged.

The BankThe expectations of the Global Management RBC economist Patricia Croft, prices could walk through the third quarter of 2010 confirms believed. Similarly, Laurentian Bank had published its report in October 2009, the mortgage rate to 3.25% can be hiked up at the end of 2011, as proposed by the third quarter of 2010.

However, economist Derek Holt believed Scotia Capital, that there is a possibility that the Bank of Canada to keep pricesunchanged for the remainder of 2010.

Mortgage rates Canada: Implications

If interest rates are expected at Laurentian Bank of Canada moved in, it would mean that:

Interest rates would no longer be able to act as a mechanism to support the housing market in the country.
Home buyers who have highly leveraged save little or equity could be seriously compromised.

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