Interest rates remain near record lows, but there is hinting that they may begin to rise in 2013. The Bank of Canada just announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.
Those with good credit ratings can benefit from record low mortgages. Speak with your local oakville mortgage broker to determine whether this is a good time to lock in a fixed rate, or to stay with a lower variable rate. Over time variable rate mortgages have outperformed fixed rate mortgages, but is this time different – being near record low rates?
Don’t just accept the bank’s renewal form, let a local mortgage agent shop around for better rates and terms. There is no cost to the borrower, so why not?
Enjoy this low interest rate environment as inevitably, rates will need to inch higher again once the worldwide economies stabilize more.