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Canadian Mortgage Rates - will they continue to rise or will we "see" a decrease in the next six months? Relatively speaking current rates remain low. (Remember the 80's - at that time 13% for a 5 year, fixed, canadian mortgage rate, would have welcomed cheers of delight in most households. Currently, not so much).

The rates we've seen in the past few years..... those days seem to be but a dream. If you have read any articles published by various economic analysts, the belief is that Canadian Mortgage rates have appeared more as anomolies these past years than benchmark representations of where rates should be. There seems, recently, no rhyme nor reason regarding the "science" in how pricing of Canadian Mortgage Rates is determined.

Take the bond Market for example. Banks use bonds to generate money. Our friendly consumer give banks their money and in return the Bank pays them interest on that money. How, you may ask does this effect a mortgage rate? Good question. The Banks take the friendly consumer's money then loans that money to individuals requiring mortgages. Individuals who require mortgages pay a Canadian Mortgage rate based on the term they have opted for. The Bank profits between the "spread" - the difference in rate between "borrowing" the bond money and lending this money to finance mortgages. So, when the bond market rates decline one would naturally concur that Canadian Mortgage rates should decline. This has not happened. Banks have increased their profit taking by not "listening" to the bond market - why else have Canadian Mortgage rates increased despite a decrease in the bond market rate? (The Bank of Canada did not move prime?) This is really the coles notes version as additional factors such as the inflationary rate also determine what rates will do.

Remember Banks are our friends. It's how they are approached that can determine the best rate being offered to you. As a licensed and independent mortgage professional it becomes advantageous to my clients that I deal with various banks when negotiating the best mortgage for them. I have no bias - it matters not to me which Lender a client chooses. It only matters that I get the best rate and product for my client.

No one has a crystal ball. No one knows what rates will do in the next six months.....if you know of someone, please forward me their name perhaps I can get some help on picking the 649 numbers. I can guarantee that rates will go up and rates will go down. I cannot foresee "when" this will occur.

Bottome line - Canadian Mortgage rates fluctuate. If you find that dream home, vacation or investment property and the rate, term and mortgage payment suits your needs that's all that a consumer can depend on