Canadian Mortgage Rates At Canadalend

Everyone stays attuned to the rate announcement from the bank and more so the homebuyers. This time the announcement is in favor of variable rate borrowers. Mortgage rates of 2014 in Canada and United States are likely to increase by a small number. There is no reason to worry though, as the marginal increase will be limited to going up by only 75 basis points (bps). One bps is equal to a hundredth of a percent, which means the increase in Canadian mortgage rates would be a little more than 0.5%. On the other hand it is also likely to dip, so it is not a major cause for concern for homebuyers at the moment.

Pro Variable Rate Borrowers

The chances of hike and drop are almost same in the future mortgage rates as the U. S. economy is gaining its balance after the recession. This change in rates poses to be good news for the ARM (adjustable rate mortgage) or variable-rate borrower as Bank of Canada indicates possibility of dropping rates too.

The year 2013 witnessed a steady fixed rate for new mortgages. This stood true for long term (30 years) as well as short term (five years) investment plans with the latter’s average of 3.29 per cent. The five year investment plan will now be available at an interest rate of 3.06%.

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