Winnipeg Mortgage Rates Predictions Spring 2022
April 6, 2022 | Posted by: Ron Chan
As Winnipeg's home buyer and investor information resource, we update readers with news of Bank of Canada announcements as they impact mortgage rates. We typically wait until the announcements have been made as we know that you want facts, not speculation. However, there's news to report before news comes down from the Bank of Canada's up and coming press release on April 13. What is about to happen to Winnipeg mortgage rates this spring of 2022? Here's what you need to know.
Near Certainties that Winnipeg Home Buyers Need to Know About in Regards to Fixed and Variable Mortgage Rates this Spring of 2022
Canada's Big Banks Unanimously Predict Bank of Canada to Hike the Borrowing Rate
Bloomberg, Reuters, the Financial Post and the rest all weighed in today (Wednesday, April 6) to report that Canada's biggest banks (BMO, CIBC, RBC, Scotia Bank, TD) have unanimously predicted that the Bank of Canada will raise their Policy rate this month. This prediction comes off of the heels of a quarterly survey that showed Canadian firms are hitting capacity constraints amid intensifying inflation concerns. These experts predict a 50-point hike, which will increase it to 1%. If you recall, the Bank of Canada committed to raising the policy rate from .25% to .5%. last month. This is right in line with what we predicted in our last report to buyers. We stated that the Bank would continue to raise the cost of borrowing through the remainder of 2022, possible beyond.
Mortgage Rates Will Rise
Since variable mortgage rates are tied to the Bank of Canada policy rate you can expect an uptick. That said, variable rates are still very favorable when considering the pattern over the last decade. For instance, at press, BMO is marketing a variable that starts at 2.15 percent while RBC has their's listed at 2.2 percent. Keep in mind that these are their advertised Winnipeg mortgage rates. When you work with a longstanding mortgage broker you will get access to lower unadvertised rates along with first-time-buyer (as applicable) incentive programs which will reduce your downpayment requirements and more. Contact Ron Chan 204.290.9950 today to qualify.
What about fixed mortgage rates? These are tied to the Bank of Canada's activity in the bond market. These rates are also expected to rise in the months to come, including this spring. But again, like with variable rates, 5-year fixed rates remain quite low when compared to pre-pandemic days. Right now CIBC is marketing their 5-year closed fixed rate at 3.89 percent. However, if you partner with mortgage broker Ron Chan (call 204.290.9950) you may also reap the rewards of lower (than advertised) fixed mortgage rates. Get pre-approved right away to lock yourself in.
We're not going to go against the grain with our Winnipeg mortgage rates predictions this month. The writing is on the wall. Rates will rise, but it's up to you to mitigate how this will impact your home purchase, If you act fast, you can still get into the market when the cost of doing so remains VERY low. Act now - call Ron Chan at 204.290.9950 to get the ball rolling.