The Bank of Canada left the prime rate unchanged today. In explaining the decision to leave borrowing costs alone for an eighth meeting, as expected, the central bank said it believes Canada’s economy is growing again after stalling in the second quarter, but painted a troubling picture for the United States and Europe, and said exports will be a “major source of weakness.” You can read this morning’s press release here.
What does this mean to you?
If you are currently in a variable rate mortgage or have a line of credit your rate will remain unchanged. The retail bank prime rate will stay put at 3%.
Should I lock in?
If you are currently in a variable rate mortgage we see no reason to lock into a fixed at this point in time. The prime rate looks to be stable and fixed rate mortgages are also at all time lows.
Thinking of refinancing?
Now would be a good time to consider refinancing to consolidate debt or take advantage of a lower interest rate on your mortgage while rates are low. Fixed rate mortgages are being offered as low as 3.39% for a fixed 5 year.
Mortgages are very dynamic and the guidance that we offer is based on the circumstances of each individual. If you would like to review your mortgage to make sure that you are still on track please call we’d love to hear from you.