Factors Impacting The Mortgage Rates In Ontario

Interest rates on mortgages have been slowly drifting upwards over the past year or so, with some lenders now charging as much as 3 percentage points more than they did a year ago. Here are few factors that are influencing the rate you'll pay: 

1. The Federal Reserve's decision to maintain interest rates at historically low levels has led to increased demand for mortgage products and boosted the value of the dollar. This has made overseas loans more expensive to finance, which in turn has pushed up the interest rates on mortgages. For more information about the best mortgage prices in Ontario you can check online resources.

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2. Employment growth is slowing down nationwide, which could lead to a decrease in consumer spending and subsequently cause mortgage rates to rise even further. 

3. The number of homes that are being refinanced is declining, which means that there are fewer new loans being created and thus higher demand for existing products. 

4. Rates on certificates of deposit (CDs) are also rising, which may be because investors are becoming increasingly confident about the economy and are looking for safer investments. 

5. Some lenders are beginning to charge higher interest rates to customers who have a particularly high debt-to-income ratio or who have less than perfect credit scores.