With the New Year approaching, homeowners and home buyers are wondering what to expect from the economy.
The inflation rate in Canada remains below 2 per cent but has climbed more than expected over the past year due to the effects of the lower Canadian dollar and some other sector-specific factors. Oil prices have continued to fall which has eased the global financial conditions even further and will also weigh into the direction of the Canadian economy and may pose a downside risk to the inflation profile.
However on the flip side, the U.S. economy has begun to recover and strengthen which has benefited Canada’s exports which is being reflected in the increased business investments and employment. Overall, the balance of risks remain within a reasonable zone, as the economic growth is believed to take steps in a self-sustaining direction; therefore the overnight rate remains at a 1 per cent and the bank prime rate at 3 per cent.
If you are in the market for a new Mortgage, or are looking to renew or make changes to your current Mortgage and are wondering if a variable rate is suitable for you, please feel free to contact our office.