mortgage rate 5 years

The Canadian Mortgage and Housing Corporation (CMHC) in its latest Large Toronto Housing Association Market Outlook that posted mortgage rates slightly by around 50 basis points in the first four months of this year, although in late April were 30 to 35 basis points higher than 12 months ago. mortgage rates are expected to trend slightly throughout 2008, but will be within 25-50 basis points at its current.

For the year 2009, posted mortgage rates will begin drift slightly during the year. For 2008 and 2009, the one-year mortgage is expected to be posted in the 6.50 to 7.50 percent, while three to five-year posted mortgage rates are forecast to be in the range 6.75-7.50 percent.

It is interesting that the CMHC also believes that after the first time buyer saw a big upswing in 2007, when nearly 60% of home buyers were the upgrading of rental accomdation, these buyers are dropping throughout 2008 and in 2009. As a first time buyer still hard to find it, to the heads, all the way to 2009, we will also further development in the Canadian mortgage market for new products such as the amortization period 40 years and in some cases 100% mortgages, combined with less expensive housing, such as the numerous new construction condominiums in the downtown core.

CMHC Toronto Toronto Housing & Mortgage Rate Forecast

City Year Total housing MLS sales MLS average mortgage rates mortgage rates
Price Starts (1 year) (5 years)

Toronto 2007 33,293 95,164 $ 377,029 7.35% 7.54%

2008 (F) 35,000 84,000 $ 394,000 6.95% 7.01%

2009 (F) 33,600 77,000 $ 404,000 6.83% 6.97%

Source = CMHC

MLS multiple listings service
The mortgage rate forecasts are particularly interesting, because current Canadian mortgage rates are at the following levels:

* Fixed closed 1 year = 4.69%
* Fixed closed 5 years = 4.99%

With all the recent woeful economic news from the U.S., despite the fact that Canada's economy is now more independent than in the past, one would expect mortgage rates to fall or remain in the next year or so.

I think only time will tell.

Kelvin Mangaroo is the founder of the RateSupermarket.ca with the Canadians to compare Toronto mortgage rates and useful tools such as a Canadian Mortgage Calculator.