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Mortgage Rate Update: January 2017

Blog by Sara Kalke | January 3rd, 2017

2017 is upon us, and here's some news from Len Lane at Brokers for Life Dominion Lending Centres:

Welcome to next trip around the sun, a year of yet more changes in the mortgage industry and some not so good news for first time buyers as many do not qualify any longer and will either have to make more money or get a bigger down payment. But it isn't all bad news while the bond market did move up as predicted and rates have climbed some they are still under the 3% range for now.  The projections for 2017 are that rates will continue to climb and most of the big banks believe that it will level out in the 3.5% range as the bond markets continue to strengthening with the USA markets. Good News is that we still have a 2.69% 5 year fixed rate and incredible rates in the variables at 2.2% or prime minus .50% for a 5 yr term. Bank of Canada rate is not showing any signs of movement throughout 2017, at least not up.

We also heard from Ottawa that an increase in the down payment requirement for homes under 500000 is not in the cards so far, but they are politicians and their lips were moving, we are watching very closely. Mortgage Professionals Canada has hired a full time Government Liaison person who will be working with all levels of government in the coming year to present our studies that Will Dunning has put together regarding the impacts of increased down payment on all markets.