Variable Rates: No Need To Panic!

Variable Rates The Place to Stay! No need to Panic!

Many people started out Last Wednesday morning expecting three or more rate hikes in the next 18 months. Now, they’re wondering if we’ll see more than one. That’s how much rate expectations have changed since the Bank of Canada’s latest rate statement. If you’re shopping for a mortgage and believe  what the bond market is telling us, it implies your odds of success with a fixed rate may have just changed.
First off, variable rates are going nowhere fast. Now, the market is not expecting the next rate hike until spring. There is almost more risk of lenders reducing variable-rate discounts due to credit, risk or margin concerns than due to Bank of Canada rate hikes.