Canadian mortgage rates fall under 3%
According to the latest figures released, the Canadian mortgage rates have fallen below the rate of 3 per cent. Bank of Montreal lowered its five-year fixed-rate mortgage to 2.99 per cent from 3.49 per cent.
The lower retail rates will help buyers in the country but will increase difficulties for finance officials as the housing market begins its spring sale season. The Bank of Montreal has announced its decision to lower the interest rates but market experts said that it might be enough to revive the sluggish housing market as other factors including provincial elections in Quebec might affect the market.
Experts have said that the long term rates are priced in relation to bond yields allowing financial institutions like TD Bank and Scotiabank to reduce their four-year fixed-rate mortgages below three per cent. Several banks are trying to cut their interest rates but experts have said the lower rates are not expected to continue for a longer period of time.
Experts have said that the growth in the housing market will increase this summer and bond yields are likely to turn higher this year.