If the banks aren’t prepared to put the brakes on rising mortgage debt, the Bank of Canada may soon be, hinting that it could raise its key overnight rate as soon as this summer.
“The heightened uncertainty around the global economic outlook has decreased in the weeks since the Bank released its January Monetary Policy Report (MPR),” reads Thursday’s announcement maintaining the Central Bank’s benchmark rate at 1 per cent. “With tentative signs of stabilization in European bank funding and sovereign debt markets, conditions in global financial markets have improved and risk aversion has decreased.”
For analysts, that translates into the strongest indication in more than a year that the bank may have enough room sometime this year to raise the interest rate it charges banks. The knock-on effect would be to raise interest rates for borrowers.
Ensure you get a rate hold before this happens.
BMO is bringing back the 2.99% mortgage again. Don’t get worked up about it. It is just as super-restricted as it was before, 25 year am max and there is a Due on Sale clause causing a need for a payout – which could be literally thousands in penalties.
This mortgage does not fit for most people.
We can get you a full-featured product for the same rate without the crazy risky down side.
This is great news!
In a report released Monday, CREA said MLS sales in the province would grow by 6.8 per cent this year to 57,400 and by another 1.7 per cent in 2013 to 58,400.
Across the country, CREA forecasts 0.3 per cent growth in 2012 to 458,800 transactions but a decline of 0.3 per cent in 2013 to 457,200 units.
The average sale price in Alberta is forecast to grow by 1.4 per cent in each of the next two years to $358,300 in 2012 and to $363,200 in 2013.
Nationally, the average sale price is forecast to decline by 1.1 per cent this year to $359,100 but increase by 0.9 per cent in 2013 to $362,300.
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