BoC signals that rates will rise gradually

The recent jump in Canada’s inflation rate should be temporary and price levels will remain subdued even with a gradual reduction in monetary stimulus, the Bank of Canada said on Wednesday. Despite putting an interest rate hike firmly back on the table for the second half of the year on Tuesday, the bank suggested in…


Banks lower residential mortgage rates

Bank of Montreal and TD Canada Trust both cut their benchmark mortgage rates by a tenth of a percentage point Tuesday. The 5-year fixed rate at both banks now stands at 5.29% and as low as 3.49% and 3.89% using various promotional offers. Banks typically fund their fixed-rate mortgage lending from instruments tied to bond…


Why rising interest rates haven’t flattened the housing market

The Bank of Canada cranked up its trendsetting overnight rate for the third time in four months on Wednesday and the impact will be felt by a wide range of borrowers. But home buyers? Not so much. True, the central bank’s increase of one-quarter of a percentage point has already been applied by the major…


The pros and cons of hybrid mortgages

According to the RBC survey results, most of us still prefer a fixed-rate mortgage, where the rate of interest is fixed for a specific period of time. With this kind of mortgage, you lock in your mortgage interest rate to a specified rate for a term as long as 10 years. The benefits of a…


Central banks must raise interest rates

There is an urgent need for industrialized economies to begin cutting their debt-laden budgets and central banks to hike interest rates — or else face the risk that inflation gets unwieldy, the OECD warned Wednesday in its latest global economic outlook. “Exit from exceptional fiscal support must start now, or by 2011 at the latest,…