This morning the Bank of Canada announced that it is not making any changes to the prime rate. This comes after 3 previous increases during the summer. The bank expects the economic recovery to be more gradual than it had projected in July. To read the full Bank of Canada press release click here. The next meeting is scheduled for December 7th.
What does this mean to you?
If you are in a variable rate mortgage or have lines of credit, your monthly payments will not change. The retail bank prime rate will remain at 3.00%.
Should I lock in?
While we have seen some increases to the prime rate over the summer, I still don’t think there is any indication that large long-term increases are possible yet.
As a result of the on going economic uncertainty, fixed mortgage rates have continued to drop to unprecedented low levels. It is possible to lock in your variable rate at 3.69% for a fixed 5 year, or arrange a new mortgage for 3.49%.
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 get in contact here or book a call directly into my calendar below.
