The latest outlook from the National Bank Financial Group reveals that they believe that global recovery will lead the Bank of Canada to begin raising its policy rate early in 2010, compared to having the rates stand until June 2010.
With the Bank of Canada beginning to raise its policy rate earlier than expected, any accommodations through the year will be removed.
The expected increase in the overnight rate would be from the current 0.25% to 1.50, however the monetary policy is expected to remain.
With this said, it would be a good idea to prepare for the moment rates increase, especially if they increase sooner than we all expect according to the National Bank Financial Group.
For buyers in the market you might want to lock in a rate as soon as possible, seeing as if rates do go up, it is possible to hinder your purchase.
With a higher rate you might have to lessen the overall cost of your home, however that is only one thought as to offset the cost when rates increase.
If you do lock in a rate within the next few months, you should be fine for when rates do increase, unless you have a variable mortgage.
Keep an eye out for any possible increases in order to avoid losing the chance to get the lowest rate possible.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
