The market at a glance:

The Bank of Canada had their quarterly meeting on Sept 10th. The decision was to keep the overnight rate at .5%. The General consensus on the future of the over night rate is no changes will be done till 2017. It’s pretty hard to look that far in advance and accurately predict an increase in 2 years from now. It pretty fair to say given the state of the economy that they will not be going up anytime soon. There’s some who are actually predicting it to possibly come down prior to going up.

There could be some significant movement downward on the fixed side. Currently the spread between bond rates and the rates being offered is significantly above the normal range. It will take just one lender to decide it wants to ramp up it’s market share and give a super low rate and still maintain it’s normal profit forecasts. If one lender drops their rates the rest are sure to follow as the mortgage market is one of the most competitive markets around.

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Brian Medlow

​Mortgage Associate

Mortgage Select Ltd