Thursday, March 11, 2010

Mortgage Canada Rates

Since the installation of multiple mortgage products with various features and technologies, the mortgage Canada rates have become pretty complex. Canada is an economy in which the banks play a highly substantial role in the market. The banks hold more than 62.1% of total outstanding mortgage market, which is a highly appreciated status. Also it is the Bank of Canada that determines the Mortgage Canada Rates, every month. The mortgage Canada is being regulated by a government agency CMHC (Canada Mortgage and Housing Corporation). CMHC provides certain regulatory rules to guarantee mortgages with lesser cost for the Canadian people. These regulatory rules include mortgage insurance policies against loans to protect the interest of both borrowers and lenders. The CMHC policy also provides assistance to home buyers in Canada.
The mortgage Canada rates is now in an all time low rate of 0.25%, as decided by the Bank of Canada in the rate meeting conducted on September 10, 2009. Also the Bank does not expect a rise in the interest rates till July 2010 as there is not an indication of a growth in inflation. But there are speculations that the Mortgage Canada rates might go up after July 2010. Even though speculations are there, many of the capital economists believe that Bank of Canada will not take a harsh step of increasing mortgage rates if there is not a considerable hike in inflation.
If the Bank of Canada would get compelled to find itself in a position to increase the Mortgage Canada rates, by 3.25% in 2011, the market will surely undergo certain changes as well. The changes will appear mainly in the real estate market in which the interest state will lose its status as the support mechanism of real estate market. Because of this home buyers who have a heavy mortgage and little savings will suffer a lot.
To avoid such a situation to be happened, it is advisable for borrowers to get the help of good mortgage brokers to have the proper assistance for Mortgage Canada rates. The mortgage brokers along with lenders are recommended to make sure that the borrower has the capacity to pay at least 5% of the down payment and 1.5% of the purchase price to be met with the closing costs, if he does not have to pay any provincial tax to be paid. This should be criteria for giving loan on a mortgage to avoid further non performing asset issue for the lenders and subsequently to the entire economy. Thus it is recommended for the borrowers to approach a good mortgage broker to get help to manage your mortgage fund and mortgage Canada rates.

Since you are not an ardent follower of market hypes, you are not advised to shop your mortgage alone as it may be an initiative of a big future problem. The best way is to approach a good mortgage broker who can compare the mortgage Canada rates of various mortgage products offered by different lenders, which can ultimately help you to save a lot.


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