There are a lot of rumours out there with a lot of consumers and I feel it is important to share the information direct from the source “The Government of Canada” on the new mortgage rule changes. First time home buyers expressing confusion if it affects them shouldn’t be concerned unless they are looking at shorter term mortgages or variable rate mortgages. If you are considering a 5 year fixed term, you are unaffected! If you are purchasing a rental property or refinancing your home for most of your equity beware of the rule changes. If you require clarification of these rules please contact me to discuss. They come into effect April 19, 2010.
Bank of Canada holds rates steady today, howevever, This is an article that might be of interest to everyone. We now have experts making predictions when rates will increase in the wake of positive economic announcements for Canada ( + GDP growth). This article states we could start seeing rates increase as soon as June 1. More positive economic news will put pressure on the Bank of Canada to increase rates in coming months. The next Bank of Canada announcement is Apr 20/10.