Canadalend.com, Canadas Leading Private Mortgage Professionals, Releases Comments on OECD Claim That Interest Rates Will Rise in May 2015

Toronto, Canada (PRWEB) December 04, 2014

Canadalend.com, the leading low cost private mortgage alternative supplier in Canada, is releasing its remarks on a report from the Organisation for Economic Co-operation and Development (OECD) that the Bank of Canada will begin increasing interest rates in May 2015.

According to a recent report from the OECD, the Bank of Canada will begin increasing its overnight financing rate this coming May (and raise it steadily afterwards), which is a complete six months ahead of most economical projections. (Source: OECD, “Canada – Economic outlook overview (November 2014),” November 23, 2014; http://ift.tt/1G2oZ9Q.)

“The OECD claims that Canada’s ultra-low one percent central bank rate must begin rising to counter inflationary pressures; particularly as the market shows signs of continual increase,” says Bob Aggarwal, president of Canadalend.com.

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Aggarwal clarifies that increasing the overnight financing rate would have an instant effect on rates of interest. The overnight financing rate determines the Prime Rate, which is what lines of credit, loans, and variable mortgages are based on.

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Nevertheless, there are several reasons why the Bank of Canada is not going to increase interest rates until after in 2015, says Aggarwal. For starters, there are numerous risk factors underpinning the worldwide market: the eurozone is really on the verge of falling back into a downturn and increase trajectories in China, Russia, and Japan are also a growing concern.

“Economic data out of the U.S., Canada’s largest trading partner, are supporting; the market is growing and unemployment is falling. This implies the U.S. Federal Reserve will not increase its record-low rates until sometime in the middle of next year,” Aggarwal includes. !

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At exactly the same time, the Bank of Canada has proposed it is not going to increase its rates ahead of the Federal Reserve, says Aggarwal. In addition to that, the rates in the U.S. are considerably lower than those in Canada, so even if the Fed does increase them in June, the Bank of Canada has room to consider its alternatives.

“The Canadian property market remains strong; even as we head into the wintertime, a span that traditionally experiences a lull. With interest rates anticipated to stay low until at least the midst of 2015, now’s an ideal time for first-time home buyers looking to step on the property ladder to contact Canadalend.com,” Aggarwal closes.

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The independent, accredited brokers at Canadalend.com can help home buyers get the top mortgage in the very best rates; a mortgage which matches their short- and long term fiscal and lifestyle needs. Canadalend.com additionally supplies customers with commercial mortgages, home equity credit, debt consolidation, and help with funding concerns.

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