Fixed Rates will go from 3.99% for a 5-year fixed at the beginning of the year to the mid-4% range as early as February. By late summer of 2010 we will be back up into the 5% range.
Variable rate mortgages, which are based on the Canadian Prime Rate (currently at 2.25% set by the Bank of Canada) will remain the same until June 2010 as promised by the Bank of Canada. The Prime Rate will then jump to 3% as the economy continues to improve.
Variable Rate mortgage products will remain at Prime - 0.10% until the Fall of 2010. At that point, as the Prime Rate increases, lenders will begin offering Prime - 0.25% for a 5-year term mortgage.
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