March 2019 Rate Watch – Bank of Canada Interest Rate Decision

March 9, 2019

What a difference a few months make. In 2018 the Canadian economy was set to out pace it’s growth projections prompting the Bank of Canada to swiftly increase the benchmark rate 3 times. The Bank of Canada cautioned Canadians about the likelihood of 3 additional increases in 2019.

3 months into 2019 and all the talk of interest rate hikes is all but gone.

This morning the Bank of Canada made their 2nd interest rate announcement for 2019. As was widely anticipated by economists and observers the benchmark rate remained unchanged at 1.75% which translates into 3.95% for the retail bank prime rate.

Some of the highlights in their pressrelease include the following:

  • slowdown in the global economy has been more pronounced and widespread than the Bank had forecast in January
  • here in Canada, consumer spending and the housing market were soft, despite strong growth in employment and labour income
  • the Canadian economy will be weaker in the first half of 2019 than the Bank projected in January

If you would like to read the entire press release click here.

How will this change my interest rates?

Currently the retail bank prime rate is sitting at 3.95%. There will be no changes to your payments if you are in a variable rate mortgage or have a line of credit based on prime.

Is now the time to lock-in to a fixed?

Based on current economic projections for 2019 the risk of increases to the prime rate has subsided.  If you’re carrying a variable rate mortgage I don’t recommend converting to fixed at the current time.

 

Want to chat?

Let’s set up a time to talk! I just came back from our annual sales conference in Mexico where we had a presentation by the chief economist of TD bank who gaves us some insights on how TD is seeing the next few months unfold.

You can book a call time directly into my availability calendar here: https://meetme.so/ChristopherMolder

Next meeting is scheduled for April 24th 2019.

Profile

Christopher Molder

Mortgage Broker

Christopher is a mortgage broker based in Toronto, Canada. And a son of a broker too.He’s a second generation mortgage broker.Following in his father’s steps he joined the family mortgage business straight out of university.

Customer Service Numbers:

CMHC: 1-800-668-2642
Genworth: 1-800-511-8888
Canada Guaranty: 1-866-414-9109

ATB: 1-800-332-8383
B2B: 1-800-263-8349
BMO: 1-877-895-3278
Bridgewater: 1-866-243-4301
CIBC: 1-800-465-2422
CMLS: 1-888-995-2657
Optimum: 1-866-441-3775
Equitable: 1-888-334-3313
Connect First: 403-736-4000
Chinook Financial: 403-934-3358
First Calgary Financial: 403-736-4000
First National: 1-888-488-0794
Haventree: 1-855-272-0051
Home Trust: 1-855-270-3630
HSBC: 1-888-310-4722
ICICI: 1-888-424-2422
Manulife: 1-877-765-2265
MCAP: 1-800-265-2624
Merix: 1-877-637-4911
Marathon: 1-855-503-6060
RBC: 1-866-809-5800
RFA: 1-877-416-7873
RMG: 1-866-809-5800
Scotiabank: 1-800-472-6842
Servus: 1-877-378-8728
Street Capital: 1-866-683-8090
TD: 1-866-222-3456