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Investors: 50% Probability of Mortgage Rates Rising by June 1

On April 13, major banks hiked interest rates – leading into what may be the busiest period of home buying activity in recent memory, says the Financial Post.

Eric Lascelles, chief economics and rates strategist for the Toronto-Dominion Bank TD Securities Unit, told reporters that investors now agree that there is a 50% probability that Bank of Canada rates will increase as early as June 1.

The incoming HST in Ontario and BC, rising interest rates and new down payment rules for property investors set to go into effect on April 19 have the potential to impact first time buyers the most.

According to Bill Jamieson, Vice-President of Operations for CENTUM Financial Group Inc. “Despite media coverage of rate increases, first-time home buyer should remember that we are still experiencing the lowest mortgage rates in decades. However, every point a buyer can negotiate off posted rates is money in their pockets to offset the looming higher costs of home ownership.”
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