Strong Housing Market and Weak Canadian Dollar.
If you gain any comfort in knowing that the Canadian Dollar is strong you will probably have a stressful year in 2014. The Bank of Canada may be working behind the scenes to get the Canadian Dollar weaker relative to the US Dollar. A weaker Canadian Dollar will mean that exports to the United States will increase and hopefully stimulate a lagging Canadian economy.
If you didn’t see the Bank of Canada’s statement yesterday here it is. In yesterday’s statement the Bank of Canada didn’t directly speak to the affect they are having on the Canadian Dollar. They did speak to the Housing Market. Their quote: ”The Bank continues to expect a soft landing in the housing market,” Might give some comfort to homeowners. It is however important to keep in mind that these prices are heavily correlated to the low interest rates we continue to see.
The Bank did say: “Non commodity exports continue to disappoint,” It is here that they can try to guide our economy back to health, as a lower Canadian Dollar will stimulate our exports that don’t rhyme with spoil.
The Bank still doesn’t expect to move rates until the end of 2015. Any further commentary from the Bank that eludes to a rate drop should probably be ignored as it is almost certainly meant to reduce the Canadian Dollar.
Over Christmas you can rest easy knowing that Fixed Rates are low and Variable Rates aren’t moving for some time. If you’re in the market to refinance or transfer your existing mortgage this is a great time. There are probably some additional Government imposed mortgage changes coming, so try to plan your next move sooner rather than later to avoid having to jump through too many hoops.
If you have any questions, remember we are here to help. The salaried mortgage experts at MorCan Direct are here to provide you with Sound, Unbiased Mortgage Advice. It is the last week before we announce the winner to our; “Home for the Holidays Campaign with CFRB 1010”. If you want to fly your loved ones homes for the holidays, enter here.