Homebuyers planning to do home shopping in the near future received some good news today. According to the governor of Bank of Canada, mortgage interest rates should remain very low for foreseeable future. The low level of the rates is due to economic uncertainty caused by the pandemic and it will be maintained until economic slowdown is absorbed. Experts forecast that there will be no interest rate increase before 2023. Parallel with its interest rate policy, the Bank also reiterated its intention to continue purchasing bonds until full recovery of the economy is underway.
- In Canada the citizens have realized that these low interests will remain for a long time to come.
- Even though there is a surplus, the Canadian government does not have the intention to raise interest rates soon.
- They project that inflation will remain low and that GPD growth will be positive in the upcoming years.
“The biggest question is whether you choose to lock in these low rates at a longer term, say 5 or 7 years, or opt for a shorter fixed term or variable rate.”
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