First Foundation’s Best Rates to Open the Week:
Term Mortgage Rates
1 Year 2.45%
2 Year 3.20%
3 Year 3.34%
4 Year 3.49%
5 Year 3.49%
7 Year 4.75%
10 Year 5.14%
ARM / Variable 2.20%
Line of Credit 3.50%
Qualifying Rate 5.19%
The TSX closed higher for a third straight session on Monday as resource issues rallied with commodity prices on relief that China did not raise interest rates despite soaring inflation.
The S&P/ TSX Composite Index rose 56.39 points, or 0.4 percent, to a 15-month high of 13,295.86.
According to an article issued by Reuters today, Finance Minister Jim Flaherty warned again on Monday the government could tighten mortgage rules further if needed, after a report showed the country’s household debt levels have soared.
“As I’ve said before, if necessary, we will tighten the mortgage rules again. We keep an eye on the level of credit,” he told reporters.
But Ottawa is not about to take immediate steps to curb household borrowing, he said, based on discussions with banks about default rates. The government has recently tightened mortgage rules twice.
“There is no reason for extreme concern now. There is reason for concern, so I watch,” Flaherty said.
“Part of what I have to do is balance the amount of credit we see out there with the job creation that we see in the economy as well.”
Earlier on Monday, Bank of Canada Governor Mark Carney flagged his concerns over household debt levels, which according to a Statistics Canada report on Monday surpassed household debt levels in the United States in the third quarter.
The thing is, our willingness to take on debt is what has kept our economy afloat where as Americans have brought their consumption to a screeching halt, right along with their economy.
While our government is behaving in an “appropriately concerned” manner about our zeal in taking bankers up on their offer of cheap money at the moment, neither the Carney or the banks will probably do anything just now to halt Canada’s slowing economic recovery.
The Finance Minister’s remarks are probably alot of huff and bluff so he can say he told us so when the rates hit the proverbial fan next year leaving many to struggle with the high cost of borrowing on their excessive debt.
Now, more than ever, be sure to talk to an independent mortgage professional about your mortgage plans, whether you are considering buying or refinancing. Their experience will help to guide you in making the right mortgage decisions now and for the future.