Here are my predictions fro 2014
Fixed rates will drop due to competition within the Lenders for Market Share and a recovering Stock Market. The Bond Market should allow 5 Year Fixed rates to land around the 3.19% level by March this year.
I predict the Back of Canada Rate will be stable at least until July this year and the 3.00 % Prime rate
will hold. Later this year we might see a .25% jump.
I see further tightening by the government by way of Bill 20/21 this time focusing on the insurers. Lenders will have to do more due diligence on Self Employed files and more focus on the property itself.
Many Lenders use Auto Appraisal systems instead of Appraisals. I see a tightening and more full appraisals being requested. Wait times could be as much as 3-5 days as Appraisers find it hard to keep up with the demands.
As always, I suggest using a Mortgage Broker for your purchase or refinance. You get access to many products and Lenders. Theses days, everyone needs advice and experience behind them to get the best deal and the job done.