http://www.aimchecker.com/rbc-house-insurance-canada/
Ontario Mortgage – A forecast for interest rates by Nelson
What are the long term forecasts for Ontario mortgage rates and the real estate market in Canada? While it is impossible to pinpoint where rates and home prices will go, the general consensus from major bank economists is that the cost of borrowing will be going up. The question is how much mortgage rates will rise. The CIBC bank predicts that by the end of 2011, the overnight rate will be 2.5%. Other banks, like RBC and TD predict a higher rise of 3.5%. The exact amount rates will rise is unknown, but it does appear that the variable cost of borrowing will rise significantly by 2011. The fixed rate, which is driven by bond yields, is also expect to rise over the same time period.
In recent months, the Ontario real estate market has seen a surge in buying from home shoppers trying to beat the introduction of the HST. This tax went into effect on July 1st. Another factor driving the market has been the stricter rules that have come into effect for government backed insured mortgages. All borrowers looking for an Ontario mortgage have to meet the set standards for a five-year, fixed-rate mortgage, to help insure the Canadian housing market does not follow the boom to bust pattern that occurred in the United States.
The stricter rules will also affect homeowners looking to refinance their mortgage. New rules mean Canadian borrowers will only be able to refinance 90% of their mortgage, down from the current 95%.
The steps for long-term stability of the housing market in Canada also address real estate speculators. For investment properties that are not owner occupied, the minimum down payment will go up to 20%.
Whether you are looking to buy a new house or refinance an existing one, the experts at Mortgage Medics can get you the best rates and terms on an Ontario mortgage. Call today for a free consultation.
About the Author
Nelson Wolery is a mortgage broker consultant in Canada. For more information on obtaining a secured debt consolidation loan in Canada, contact the Mortgage Medics team at http://www.mortgagemedics.ca
Royal Bank of Canada (RBC Bank) : Corporate Bully