Understanding how to get low mortgage interest rates Ontario will save you money. There are a number of different factors that every consumer should know before getting a mortgage. Your credit rating, income and to loan to value ratio are the three most important factors that affect interest rates. Our brokers can help you decide whether you should have a variable, fixed, open or closed mortgage. Call or email an application for a free quote on your mortgage.
To get an idea of how low mortgage rates Ontario will be in the future, you should refer to a number of different sources. First listen to what the Bank of Canada thinks the short or long term interest rates will be. At the present time they have stated that they do not foresee the present low mortgage rates Ontario moving up till 2014. This is a signal that variable rates might be the best option for most Canadians. The borrower can get a low rate open variable mortgage that can be converted to a fixed mortgage at some point in the future. In this case the borrower can save money with the lower variable interest and still have the option to lock into a fixed mortgage.
Low mortgage rates in Canada are also affected by economic activity inside and outside of Canada. You should pay closer attention to the economic activity within the country. If the economy is starting to pick up across the country and unemployment levels are starting to fall then the central bank may feel that the economy can withstand higher interest rates.
You should also be aware that inflation and the growth in gross domestic product can affect current interest rates. The Bank of Canada has a range for inflation around 2% -3%. If inflation goes above this range you can expect interest rates to rise. The range for growth in gross domestic product can be higher but if the growth starts to reach above 5% you can also expect the bank to raise interest rates.
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