Canadalend.com, the Nation’s Leading Private Mortgage Professionals, Says Major Economic Data Suggest Interest Rates Could Stay Low for Longer

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Canadalend.com, the leading low-cost, private mortgage solution provider in the country, is weighing in on how recently announced Consumer Price Index (CPI) data for January was slow, suggesting Canada’s interest rates will continue to stay low for the near future.

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Canadalend.com, the Nation’s Leading Private Mortgage

Core inflationary data, which strips out eight of the most volatile items, including energy and food, was actually up 2.4%, an increase from January’s reading of 2.3%

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Canadalend.com, the leading low-cost, private mortgage solution provider in the country, is weighing in on how recently announced Consumer Price Index (CPI) data for January was slow, suggesting Canada’s interest rates will continue to stay low for the near future.

According to the recently released CPI data, Canada’s annual pace of inflation cooled in January, mostly as a result of the fall-off in oil prices. Canada’s inflation rate dipped to 1.0% in January from 1.5% in December. This represents the third straight month of declines and the lowest rate in more than a year. (Source: “Consumer Price Index, January 2015,” Statistics Canada web site; http://www.statcan.gc.ca/daily-quotidien/150226/dq150226a-eng.htm, February 26, 2015.)

“Core inflationary data, which strips out eight of the most volatile items, including energy and food, was actually up 2.4%, an increase from January’s reading of 2.3%,” says Bob Aggarwal, president of Canadalend.com. “Outside of gas, a lot of things got more expensive in January, including food, which is up 4.6%, the biggest increase since late 2011.” (Ibid.)

Aggarwal explains that the one percent increase in the CPI shows that the Canadian economy remains unstable. While a further rate cut is not expected from the Bank of Canada when it next meets in March, Canadalend.com believes the recent inflationary data indicate that the overnight lending rate, which impacts mortgages, will remain at 0.75%. As a result, interest rates will stay at current levels, quite possibly for the remainder of 2015, says Aggarwal.

In January, the Bank of Canada made the surprise decision to cut its overnight lending rate by a quarter of a percentage point to 0.75%; the central bank had held its benchmark rate at one percent since September 2010. (Ibid.) Since then, the country’s big banks have made it cheaper for Canadians to borrow money. Five-year fixed mortgage rates are as low as 2.84% at Canada’s major banks, and even lower fixed mortgage rates can be found with smaller lenders.

“The same is true with variable mortgage rates, with some dipping below two percent. That said, there’s more to consider when getting a mortgage than just the interest rate,” Aggarwal concludes. “The independent, licensed agents at Canadalend.com help first-time homebuyers find the best rates and financial products designed to fit their financial and lifestyle needs. Canada’s big banks only promote their own financial products, but because Canadalend.com is independent, we have access to hundreds of different lenders.”

Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled, independent, licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and assistance with financing concerns. To learn more about Canadalend.com, visit the web site at http://www.Canadalend.com.

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Bob Aggrawal
@canadalend
since: 02/2011
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