Bank of Canada looks trapped on interest rate

Looks like the BoC will be forced to keep interest rates at 1% (bank rate 3%) next Tuesday June 5th.  Negative Growth in the global economy as well as well as lower than expected GDP growth of 1.5% compared to the forecast of 2.5% are key factors.

With the CDN dollar still overvalued, and the US federal reserve looking to keep it interest rate on hold until 2014, combined with the ongoing European mess continue to give good reason the Bank of Canada's best options will be to continue to exercise its wait and see approach. 

This is good new for borrowers looking to purchase/upgrade on property or refinance an existing mortgage as rates are at all time lows once again with a 5 year fixed rate of 3.09%. 

Click here to read the complete Globe and Mail article

Its not just about the intererst rate

Finding a good mortgage rate online is a cinch. Anyone who has ever looked for rate comparison sites knows the Internet is packed with them.

But determining the best mortgage term – the length of the mortgage contract – is trickier because up-to-date term comparisons are hard to find.

Although mortgage terms are often overshadowed by the intense focus on mortgage rates, it pays to put a lot of thought into term selection. It’s the No 1 factor in determining how much interest you’ll fork over to a lender.

If you pick a closed mortgage with the wrong term, you’re stuck with that rate until maturity, unless you cough up a penalty to break the mortgage. Worse yet, if you choose a “no-frills” mortgage – one with lower rates in exchange for more restrictions – you’re often barred from leaving your lender for the duration of the term, unless you sell the property.

Click here to read the complete Globe and Mail article