TORONTO, ONTARIO — (Marketwire) — 10/06/11 — A great shift is happening in the mortgage market as lenders are enticing Canadian consumers to deeply discounted fixed mortgage rates and away from variable mortgages. Low bond yields continue to provide lenders with room to manoeuvre and offer better pricing on fixed products, says RateSupermarket.ca-s for October 2011.
A few, short weeks ago were still being offered at Prime – 0.95%. Market conditions have changed dramatically resulting in variable products moving 0.50% higher, despite no change to the Bank of Canada-s key interest rate. This now puts variable rates in line with two year fixed mortgages.
Over the short term, the Panel believes will dip, as lenders try to make them even more attractive to home buyers, while variable rate products will remain unchanged at their current higher levels.
Fixed mortgage rates: Down
In an effort to put longer term assets on their books mortgage lenders are attracting consumers with lower and lower fixed mortgage rates, as bond yields remain low. Our Panel believes the short term fixed mortgage rate trend is down.
Variable mortgage rates: Unchanged
“Nein to Greece” is what one Panel member believes Europe will decide; putting the country into default as the outlook worsens for the financial crisis across the Atlantic. This is already starting to hit home as the possibility of a Greek default is affecting Canadian lenders, leading to higher variable as lenders reduce their discounts to Prime.
Our Panel believes that in an effort to shift consumers away from variable products, lenders will keep variable mortgage rates stable over the short term with a bias towards increasing them closer and closer to Prime.
To read all the detailed commentary from our Panel Members, please visit: .
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:
About RateSupermarket.ca )
RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada. Founded in May of 2008, their easy to use comparison engine provides much needed transparency to the Canadian financial market and allows visitors to quickly find the . Their new Mortgage Tool App for the iPhone also allows house hunters to compare mortgage rates using their Smartphone. Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.
Contacts:
Ratesupermarket.ca
Kelvin Mangaroo
Cell: 416-844-2931
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