January 2016 Quarterly Mortgage Outlook

Variable Rates

There is increased anticipation that the Bank of Canada will be decreasing the over night rate again. Most expectations are for a 0.25% drop. However as we saw with the previous rate drop the banks only passed along 0.15% to consumers.

Fixed Rates

Global demand for stable and reliable Canadian Mortgage Bonds appears to remain strong. With continuing low inflation and weak oil prices there is no expectation of bond yields moving up any time soon. Rates should trend in the same band as they have for the past year.