The recent decision of the Bank of Canada to hold steady on interest rates and governor Stephen Poloz’s prediction for second-quarter growth have been questioned by the president of mortgage broker Canadalend.com. Bob Aggarwal says that the governor’s forecast “may be a little optimistic” and explains why he believes there could be more interest rate cuts to come: “Canada’s economy contracted for the first time in nearly four years in the first quarter, which is also the most since the 2009 recession. Meanwhile, the U.S. economy contracted 0.7% in the first quarter.”

Mr Aggarwal says that with GDP declining and rebounding oil prices putting upward pressure on the Canadian dollar there may be a need for the BoC to stimulate sluggish growth with an interest rate cut to zero. Even lower rates would be good news for the mortgage business: The ultra-low-interest-rate environment will continue to benefit those looking to refinance their mortgages” Aggarwal commented, and advised that a licensed mortgage broker will help consumers find the best refinancing option.
 

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate


More market watch: