Just as you'll be recovering from the long weekend and Thanksgiving dinner, the Bank of Canada will be gearing up for its interest rate announcement on Oct. 19. However, economists are not expecting rates to rise, so holders of variable rate mortgages can rest easy, for now.
"We think the Bank of Canada is done for this year. We think it's going to keep its rate at 1% . . . but it will start to think of gradually raising rates again late in the first quarter of next year and continue through the rest of the year," says Robert Hogue, senior economist at RBC Economics in Toronto. "We're looking at a 125-basis-point (a 1.25-percentage-point increase over the) next year."
The perennial debate over whether to take a fixed-or a variable-rate mortgage has increased as the gap between the two rates is narrower than it has been in the past.
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