RateSupermarket.ca’s panel of experts Ron Butler (a broker with Verico Butler Mortgage), Will Dunning, (chief economist at the Canadian Association of Accredited Mortgage Professionals), Dan Eisner (president of True North Mortgage), Dr. Ian Lee (director of the MBA program at the Sprott School of Business), and Kelvin Mangaroo (president of RateSupermarket.ca) were unanimous in predicting that variable mortgage rates would remain unchanged in the near future.
Although Canada's inflation rate is reported to have reached 2%, removing the possibility of a central rate cut, the experts suggest it is not yet high enough to warrant an increase to Canada's borrowing costs. As a result, variable rates should remain steady in the coming months.
As for fixed mortgage rates, four out of five panel members expect them to also remain unchanged. Lenders have already cut their fixed rates to 2.99% and below, and are fighting to remain competitive with discounted offers. Bond yields have also trended lower, which suggests low rates will continue. Ron Butler was the lone dissenting voice, suggesting that very low interest rates could be the new norm, and that five-year fixed rates could decline slightly more in June.