Canadalend.com, the leading low-cost private mortgage solution provider in Canada, responds to a recent CIBC poll suggesting most Canadian homeowners believe it will take two additional years, on average, to pay off their mortgage, compared to just last year.
Toronto, Canada (PRWEB) May 23, 2013
Canadalend.com, the leading low-cost private mortgage solution provider in Canada, is releasing an expert statement on recent comments made by outgoing Bank of Canada Governor Mark Carney about the economic climate and interest rates.
Carney, in his last public appearance as Canada’s central bank chief, said recently that the Canadian economy is supported by sound fiscal policy, a resilient financial system, and a strong monetary union. Under Carney’s leadership, the central bank has held its benchmark rate at one percent since September 2010. The bank next sets rates on May 29, 2013. (Source: Isfeld, G., “Carney praises Canadian economy but warns of ‘a tougher world’,” Financial Post May 21, 2013;)
“While many economists would like to see the Bank of Canada tighten its monetary policy and raise interest rates, given the global economic and fiscal uncertainty, we don’t think interest rates will rise above one percent until next year,” says Bob Aggarwal, President of Canadalend.com. “But that doesn’t mean it couldn’t happen sooner. To tame inflation, many economists would like to see interest rates rise more rapidly. Unfortunately, any sudden shock would negatively impact consumers, as well as those unable to contend with a rapid increase in interest rates.”
“On top of that, an increase in interest rates means the big Canadian banks and lenders would rein in their already tight lending policies. This would make it even harder for those wanting to get into the housing market to get a mortgage,” Aggarwal observes. “For those Canadians that do happen to lock in at a higher interest rate, it means paying out significantly more over the duration of the loan.”
“Unfortunately, the transition to higher interest rates will be very difficult for many Canadians to deal with,” Aggarwal concludes. “Those who want to take advantage of the current near-record low interest rates and avoid having to jump through the lending hoops with the banks should consider getting a loan or refinancing their existing policy with a skilled independent licensed mortgage broker.”
To learn more about Canadalend.com, visit the web site at www.Canadalend.com.
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and assistance with financing concerns.