Once again, the Bank of Canada announced it would keep the key interest rate at a record-low 0.25 per cent to achieve its inflation target of two per cent.
While the Bank said economic growth in Canada resumed in the third quarter of 2009 and there has been a slightly higher than expected rate of inflation in recent months, it reiterated that the economy is still lagging, particularly due to factors like a strong Canadian dollar and low levels of U.S. demand.
Repeating many of the same projections as its October monetary policy report, the Bank predicted the economy to return to full capacity and reach a two per cent inflation rate in the third quarter of 2011. It forecast the economy to grow by 2.9 per cent in 2010 and 3.5 per cent in 2011.
The next Monetary Policy Report will be released Friday and the next rate announcement will be made March 2.
AS OF TODAY: VARIABLE RATE @ 1.95% (Prime -.30%)
Call John @ (604) 710-1500!
SMART PLANNING NOW WILL SAVE YOU $$$
If you’re currently in a Variable Rate mortgage and are considering converting to a Fixed product… STOP! I may be able to:
- Pay out your penalty.
- Get you a brand new 5 yr+ Product. (If you have 2-3 years left on your mortgage, do you really want to renew your mortgage when rates could potentially be a lot higher in a few years?)
- Get an interest rate that is much lower than the conversion rate within your current mortgage; saving you thousands.
The time to ask these pertinent questions is right now. We are seeing some of the lowest rates in Canadian mortgage history. Why not take advantage of what many are calling the “bottom” of interest rates? I can help you plan your long-term goals while taking advantage of these savings. It’s smart-planning and free to boot! Call now!
Today we saw a rise in the bond market. Some lenders have reacted by raising their Fixed rates, although it seems some are holding off for the time being. What does this mean to you? Enjoy the holiday season, but stay tuned for more information. Anyone on the fence should be contacting me immediately to hold these historically low rates for 120 days. Happy Holidays!
As widely expected, the Bank of Canada held the target for overnight rate at 0.25%, and reiterated its commitment to keep rates at their effective lower bound through the second quarter of 2010. The Bank recognized that while the global economic landscape has been slightly more positive, there are a significant amount of ‘fragilities’ still out there; enough to justify keeping rates where they are. More than likely, the Bank of Canada will stay put past its conditional commitment of June 2010 and the first rate hike will not come until the fourth quarter of next year.
We are at what many are calling “the bottom” for Fixed & Variable mortgage rates. With the BC real estate market still going strong, and the Vancouver Olympics right around the corner… it looks like it’s going to be an exciting start to 2010.
Thinking of getting into a home soon, or refinancing sometime between now and springtime? Give me a call to discuss holding today’s GREAT rates for 120 days and enjoy peace of mind all winter!
As of today, here are some of the best rates* available to Canadians:
VARIABLE RATE:
3Yr @ 2.00%
- Prime -.25%
- Must close within 30 days
5Yr @ 2.15%
- Prime -.10%
- Excellent Pre-Payment Privileges
- Portable
- Assumable
FIXED RATE:
5Yr @ 3.89%
- 25% Pre-Payment Privileges
- Portable
- Assumable
CALL ME TODAY!
*Rates are based on approved credit and are subject to change without notice. They are based on the most current lender information and may vary based upon individual circumstances.
Posted fixed-rate mortgages at TD Bank, CIBC, Scotiabank, Bank of Montreal and Royal Bank were cut last week, reflecting lower rates in the bond market.
Bank of Montreal was the first to announce its cuts last Wednesday while Scotiabank waited until Thursday afternoon, the last among the big banks. Laurentian Bank also lowered posted rates.
The largest percentage cuts were at Scotiabank and CIBC; however, these cuts kept all the lenders at close to the same rates. Across the board, five-year fixed rates were at 5.59 per cent and two-year fixed rates dropped to between 3.75 per cent and 3.95 per cent . Scotiabank and BMO also offered a five-year fixed closed special of 4.29 per cent.
Overall, when comparing the lowest ten-year fixed closed rate, BMO and TD have rates of 6.7 per cent, whereas CIBC is slightly higher at 6.80 per cent. Variable closed mortgage rates did not change.
W
hen speaking about the ‘Big 5′ lowering their rates… there are some things to keep in mind. Above and beyond the banks lowest rates, there are promotional rates that are available to consumers. These lower rates might be available on a 30-day ‘Quick-close’ product OR available only to select brokers who have exceeded a certain quota in mortgage volume. Fortunately, I’m in a position to discount past a lot of advertised rates. Call me to discuss your deals today!
