Economists are hoping that the Bank of Canada will not have their interest rates increased for quite some time, most probably in the latter part of 2017 or beginning of 2018. Nonetheless, the shorter-term mortgages will soon likely increase sooner than expected.
As the Feds are anticipating an increase in the interest rates by the latter part of this year, it would greatly affect the bond of the Canadian government and afterward, have an impact on the mortgage rates of the country.
The Chief Economist at BMO Nesbit Burns, Doug Porter told a news reporting site that there is a high possibility for the for the mortgage rates to increase for 5-year constant rate loans. However, he commented that the ongoing low level of the Canadian interest rates combined with the feeble inflation is a sign and a giveaway that there is a weak economic growth that is putting pressure on the availability of jobs and the increment of wages.