Mortgage Rates Current Canada
Understanding mortgage rates current Canada can help you to decide whether you should have a variable mortgage rate Canada, fixed short term mortgage or fixed long term mortgage. As of January 2011 the present interest for mortgage rates current Canada are below the historic normal level charged by the central bank, the present rate that the central bank charges its main customers (major banks like CIBC, BNS and TD) is unusually low at just below 1%.
Banks like RBC and CIBC then charge their customers, people like you and me, a small amount (around 2-3%) above the 1% they pay the Bank of Canada. This means that as a customer of a Canadian bank you would pay around 3% for variable mortgage Canada rates.
The challenge is to determine what will be the best mortgage rates current Canada in one to three years. An indicator of what future current mortgage rates Canada might look like is to look at mortgage rates over the past 30 years. Over this period of time the range for mortgage rates current Canada was a low of 2% to a high of 20%. Based on this information Canadians should expect mortgage rates to rise back to the historic normal level in the future.
To get an idea of where current mortgage rates Canada are heading, there are a number of sources that you should refer to. Listen to where the Bank of Canada thinks the short and long term rates will be heading, the Bank of Canada has stated that they do not foresee interest rates moving up till the second half of 2012. This is an excellent sign that an open variable mortgage might be the best option for some people. A borrower can get an open variable mortgage rate Canada that can be converted to a fixed five year mortgage in the future. In this situation the property owner can save money with the lower variable rate and still have the option to lock in a low fixed five year mortgage rates current Canada before interest rates rise.
Mortgage rates current Canada are also affected by national economic activity inside and outside of Canada, but most people should focus on the economic activity within Canada. If economy activity is picking up across Canada and unemployment levels are falling then the Bank of Canada may feel that the Canadian economy should have higher interest rates to moderate the level of economic activity.
You should also be aware that the Bank of Canada closely watches the inflation rates and the growth in gross domestic product. The Bank of Canada has an inflation range of around 1% -3% above this level you can expect the bank to raise interest rates to lower inflation rates. The range for growth in gross domestic product can be higher but if the growth starts to reach above 6% you can also expect the Bank of Canada to raise interest rates.
Use this information on fixed current mortgage rates Canada and variable mortgage rates current Canada to determine where your situation fits in, if you would like some free advice on your mortgage please call us. For more local information you can also refer to current mortgage rates Ontario.