Variable Mortgage Rate Forecast – January 2013

Variable mortgage rates, unlike their fixed mortgage rate counterpart, are under the control of the federal government via the Bank of Canada.  The bank of Canada recently published the following 2013 schedule of meeting dates to review the overnight rate.

  • January 23
  • March 6
  • April 17
  • May 29
  • July 17
  • September 4
  • October 23
  • December 4

Given the state of both the domestic and foreign economies its unlikely that there will be any changes to variable mortgage rates in the first half of the year.  Although the general consensus is that variable mortgage can only rise over time there is currently no upward pressure on variable mortgage rates.  This upward pressure will primarily come from inflation which in turn will come with employment growth.

For the short term, rest assured that your variable mortgage rate will not likely be affected by the upcoming January 23rd meeting date.

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