Interest rates could stay low, thanks to Brexit

By Kimberly Greene
In a move that shocked the globe, Britons have voted for the country to leave the European Union in a referendum that was held on June 23rd.
 
While negotiations could take years to complete, repercussions have already begun in markets around the world, including Canada.
 
“Global interest rates are likely to remain even lower amid the deep uncertainty over the U.K.’s and the EU’s economic fate and likely financial market volatility,” said Doug Porter, chief economist at BMO Capital Market. “In that event, the Fed will remain on ice even longer and Canadian rates will once again probe all-time lows, keeping mortgage rates at an extremely low ebb and thus farther fanning the flames in the domestic housing market.”
 
The Bank of Canada has held the current interest rate of .5% for the past year, which has contributed to attractive financing options for mortgages.

More Mortgage Guide