Since measures have been taken to reduce the spread of the Coronavirus it has been affecting mortgages rates in a seemingly unpredictable manner. Here’s why.
The spread of COVID-19 has impacted the Canadian economy in unprecedented ways. Even with March’s record-breaking Bank of Canada interest rate cuts, many homeowners are surprised to find that mortgage rates are either higher than expected or changing rapidly from day-to-day.
Shoppers are often quite surprised and frustrated to hear that with the cuts announced, banks have responded with numerous rate increases for borrowers. The reasons though are quite logical and predictable when you dig a little deeper and come down to two main factors: risk and volatility.
Update: May 2020 we’re starting to see rates on the decline again. If you’re looking to lock in a rate it might not be a bad idea. Not sure what type of rate you qualify for? We break down the different type of mortgage rates here.
Check out the video below to find out more information on why the Coronavirus is affecting mortgage rates in Canada.
