Well, the Conservative Government is now worried that Canadians are piling on too much debt while interest rates are low and will ultimately get into trouble when interest rates increase. Is their fear valid?
Positive economic data from both sides of the border has forced government bond yields up. This will most definitely halt our falling mortgage rates, but will we begin to see an increase?
A summary of 8 key take-aways from CIBC’s head economist Benjamin Tal’s discussion at a mortgage industry function last week in Toronto. His outlook is primarily positive with a hint of caution. The good news is we are in better shape than the US….the bad news is we can’t help but feel the ill effects of our southern neighbours.
| 6 Months | 4.60% | 3.85% |
| 1 Year | 3.65% | 2.49% |
| 2 Years | 3.95% | 2.95% |
| 3 Years | 5.04% | 3.69% |
| 4 Years | 5.14% | 3.89% |
| 5 Years | 5.39% | 3.69% |
| 7 Years | 6.30% | 4.95% |
| 10 Years | 6.50% | 5.20% |
| Variable | NA | 1.80% |
