Mortgage Rates to Increase, as Bond Dealers Predict 0.25% Hike in Overnight Rate

Alyssa Furtado
by Alyssa Furtado August 23, 2010 / No Comments

In a recent poll by Reuters, 11 of the 12 primary Canadian bond dealers predict a 0.25% increase in the Bank of Canada’s key interest rate. The prediction pertains to the Bank of Canada’s meeting on September 8, 2010 to decide the overnight rate (the current overnight rate is 0.75%).

The rate predictions for the next three Bank of Canada meetings are as follows:

Dealer Sept 8 Oct 19 Dec 7
BoA-Merrill Lynch 1.00% 1.00% 1.00%
BMO Capital Mkts 1.00% 1.00% 1.00%
Casgrain & Co Ltd 1.00% 1.25% 1.25%
CIBC World Mkts 1.00% 1.00% 1.00%
Deutsche Bank Sec. 1.00% 1.00% 1.25%
Desjardins Securities 1.00% 1.25% 1.50%
Laurentian Bank Sec. 1.00% 1.00% 1.00%
National Bank 1.00% 1.25% 1.50%
RBC Capital Mkts 1.00% 1.00% 1.25%
Scotia Capital 1.00% 1.00% 1.00%
TD Bank 1.00% 1.00% 1.25%
    Mean Average 1.00% 1.07% 1.08%

 

While the interest rate hike is merely a prediction, consumers should brace themselves for increases in mortgage rates.

To view the most accurate and up-to-date Canadian mortgage rates, visit RateHub.ca’s Best Mortgage Rates page. Use our mortgage calculator to view the effects of the recent interest rate cuts on your mortgage payments.