The Bank of Canada just kept the overnight rate at 1.25% but leading economists expect hikes throughout the course of the year. Why is this the case and why does it matter?
All in Rates
The Bank of Canada just kept the overnight rate at 1.25% but leading economists expect hikes throughout the course of the year. Why is this the case and why does it matter?
A look at what leading economists and the Big 6 banks are predicting ahead of next Wednesday’s Bank Rate announcement .
RBC recently released their periodic Housing Health Check. It is very similar to a quarterly CMHC Housing Market Assessment, but their dashboard is more detailed in some ways. The fact that RBC, the largest Canadian mortgage lender and CMHC the largest provider of mortgage default insurance have created these early warning systems should tell you that there is real risk in the real estate market.
There have been some updates to interest rate forecasts since our last review of rates in December. The overall trend is upward but there are differing opinions on how high rates will rise.
You will need to qualify for a 6.25% 5-year fixed mortgage by the end of 2019. The actual rate is forecast to be 4.25% but federal rules require lender apply a 2% stress test.