30 December 2010
Based on the recent economic development we can tell that it will be very difficult decision for BoC to start raising rates again next year. We are expecting rates to stay at the same level well into 2011. Moreover, in order to protect borrowers from overleveraging, regulators and government might restart their talks about tightening in mortgage lending policies which (talks) were placed on hold earlier this year and Harper’s comments are just confirming that. If you feel that tightening in lending rules or increase in mortgage rates might postpone your ability to buy a house – do pre-approval and reserve fixed rates for up to 6 months.