Guelph Mortgages

The Bank of Canada raised its overnight lending rate by 0.25% on Tuesday this week. Surveys showed that economists were split in their projections of whether the Bank would raise rates or note, citing a variety of reasons either way.

We are likely to see one more rate hike before the end of the year (maybe two) by the Bank, which would send the Prime Rate to 3.00%. The current Prime Rate is 2.75%, and still abnormally (and historically) low.

Unemployment was 7.9% for June, which is the lowest it has been since January 2009. It will be interesting to see how many of the “make work” jobs created out of government stimulus will be long-term jobs, and how many will be temporary. It is unlikely that our economy will sustain itself at current levels when the government stimulus runs out, and jobs are created out of a real need for capacity. I would be surprised to see the Unemployment Rate rise again near the end of this year.

With that in mind, it is likely that rates won’t see any major moves up, and that Variable Rate mortgages will continue to be very attractive.

Christopher Bisson
The Mortgage Centre
519-763-3900 x1003

www.mortgageconcierge.ca