The lowest fixed mortgage rate for one year has slightly increased. Other rates remained stable.
According to figures released by the Canadian Mortgage and Housing Corporation, growth in Canada’s mortgage debt slowed in the summer. The main reason is probably the government’s decision taken in March to reduce the maximum amortization period for new government-backed mortgages from 35 years to 30 and to cut the amount Canadians can borrow in refinancing mortgages from 90 per cent to 85 per cent of the value of a home. However, Canada’s personal debt still raises concerns.
According to Postmedia News report, weak global economic growth, rising unemployment, slowing Canadian housing market, and low consumer spending could force the Bank of Canada (BoC) to think about decreasing its rates again. Bank of America economist Sheryl King believes that the BoC will lower its rates as much as 25 to 50 basis points to reduce debt and provide more disposable income for Canadians, the report added.
Mortgage Rates Comparison in Alberta in The Last Week of 2011