As mentioned, Fixed-rate mortgage rates in Canada are directly tied to the US Economy and their  10-year treasuries.

Recent economic data has shown a mixed picture of the Canadian economy. Inflation rates have been a primary concern, prompting the Bank of Canada to adjust its monetary policies. The central bank has implemented several interest rate hikes in response to rising inflation over the past years. These moves are aimed at cooling down the economy and bringing inflation back to its target range of 2%

The Bank of Canada has already reduced the rate once this year, and there is a good chance that on July 24, 2024 that there could be another.

This week the US is a frenzy of information:

1.  Inflation is down both YoY and Core
2. Jobless claims came in below expectation
3. US Fed Chair J. Powell has hinted/foreshadowed an interest cut.
4.  All eyes are on the US presidential election.  Is Joe Biden up for another term?  Is Project 2025 going to tank Republican support?

In Canada, the news is less promising.  We lost over 1000 jobs in June, the Toronto real estate market is mired in a slow period and news about allegations of fraud.

What does this all mean for your mortgage?  We believe that many people should review their options and try to buy as much time as possible before renewal.  Renewing into shorter-term mortgages is a strategy, however, it’s very difficult to make up the premiums that will be paid over 1yr, 2yr, and 3yr.   Variable rates and open mortgage rates are VERY HIGH.

The best thing to do is to call us today and let’s make a plan together.