Unzippering the two economies is not going to be an easy feat. Initially the economists seem to all agree that mortgage rate will stay the same or go even lower due to the uncertainty. And Canada falls right in that pile with everyone else. 


Possible impact of Brexit on mortgage rates?

This recent article, the Washington Post explains how they feel the American economy will be affected.:

“Brexit has spawned the recent bout of volatility in global financial markets. That has anxious investors scurrying for safety -- and few assets are safer than U.S. Treasuries. High demand for government debt pulls down interest rates.

That all translates into ultra-low mortgage rates for American households. And with Britain voting for Brexit, they could go even lower.”

Canadian pundits in this Globe and Mail article "In that event, the Fed will remain on ice even longer and Canadian rates will again probe all-time lows, keeping mortgage rates at an extremely low ebb and thus further fanning the flames in the domestic housing market,” they added in a report on what’s driving property values sharply higher in Vancouver and Toronto. In Ontario and Toronto we still have the Land Transfer taxes and this has not affected the Toronto market which pays the double tax. So it will be interesting to see what Government does if anything to slow these markets. Penalizing has not worked . It may be time for incentives. Incentives vs. Taxes

Bottom Line: The cost of your money may never be lower than it is right now!

Rates are already at historic lows. The UK’s exit from the EU almost certainly guarantees they will remain low (and possibly go lower) over the next few months. If you were thinking of buying your first home or upsizing to the house of your dreams, this may be the time to act. 

Posted by Kathy Gordon on


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