Ontario Mortgage Rates - Part 3 --- When are mortgage rates going up?

When are mortgage rates going up? This seems to be the question on everyone’s mind, especially those with variable rate mortgages.

Ontario mortgage rates change depending on the state of the economy. Interest rates can be affected by the local, national and global economies. The Bank of Canada sets the lending rates for Canada and then financial institutions calculate their interest rates based on that.

When unemployment rates are high and the economy is struggling interest rates will be lower. When the economy is stable and growing Ontario mortgage interest rates will go up.

There have been reports that the economy in Canada has been improving, however we still have a huge manufacturing sector. So as our dollar increases, the currency exchange rates make manufacturing products here less affordable.

When you boil it down, a stronger Canadian Dollar is a bad thing for Canada’s manufacturing sector. Add to it other financial turmoil, for example If Greece fails, and the end result will be an even stronger Canadian Dollar. On top of that, if the United States doesn’t get their finances in order, the Canadian Dollar will see a further surge upward.

Sometimes the Bank of Canada can raise their interest rates 2 or even 3 times and you may hear that the economy is improving but that doesn’t always mean that interest rates are going to go up. In fact we think that they are going to stay the same, or even go back down depending on what happens with Greece.

The good news is, the time is right to seize the day while Ontario mortgage rates are still at historic lows. Not only is it more affordable than ever to purchase a home, if you already own one, there are lots of ways that you can still take advantage of these low Ontario mortgage rates.

You can obtain a home equity loan to consolidate debt and work towards becoming completely debt free. You could complete a long overdue home renovation or purchase a vehicle. The sky is the limit. If you were planning a big ticket purchase your home is a great way to raise money to finance it at low interest rates.

It’s hard to predict when Ontario mortgage rates are going to go up so the best thing to do is obtain the right mortgage that works within your budget, so that if mortgage rates do go up, you are prepared. For more information about when Ontario mortgage interest rates are going up please visit http://www.gtamortgagematters.com/