Canadian Mortgage Rates Today And Forecast
Industry and bank experts are unanimous in their predictions for 2012 Canadian mortgage rates – they will increase!
What is the reason for an increase in rates?
Over the past two years the Canadian economy was relatively stable, despite the economic downturn in the US. However, with the financial instability in Europe and the uncertainty that the US economy will turn around, the Canadian economy has started to slow.
If the European crises continues on its downward spiral, it is likely to prompt investment in US and Canadian treasuries. When this is combined with the already volatile bond markets, mortgage rates are surely going to creep upwards.
Current forecasts call for a rate increase from 5.19% to a maximum of 5.45% on a fixed 5-year mortgage by the end of the first quarter, with rates possibly reaching as high as 5.90% by the end of 2011. One-year mortgages are expected to see increases from 3.3% to 3.50% by the end of the first quarter, and 4.40% by the end of 2011. Overall, when calculating the interest rate increase, it is expected to be in the range of 1.5% to 2% over the entire year.
At this point in time, however, the rates have remained unchanged since March 1st, 2011. The next scheduled rate announcement is set for Jan 17, 2012.
Now, knowing the interest rates is important, but generally the average person cares more how much their monthly mortgage payment be and if it will fit in their budget.
Seeing a house is one of the largest purchases you will ever make, it is extremely important to calculate your payments and work out your finances to make sure you can afford it.
Thankfully, with our mortgage loan payment calculator, you can easily determine your monthly payments. You will need to know the amount of money you plan to borrow, the rate of interest, the loan term, and the percentage of money you plan on putting down up front, if any.
Once you enter this information into our mortgage loan payment calculator, we will break down what your monthly loan payment will be, what your down payment will be, and provide an amortization table for your monthly payments. This will allow you to determine the most affordable option before you borrow and find ways to save on interest payments.