So we've all been listening to the radio and watching the news with bated breath regarding the economy lately. The US is, or will be soon, in recession, and we're all worried about how or if it will effect us up here.
While I remain ever optimistic about our province's prosperity and ability to pull through this period with less damage than anywhere else in North America, I can't see the future. But one positive element that has already come out of this is that the Bank of Canada has announced they are lowering their rate by a quarter point.
Invis Financial, one of Canada's largest Mortgage Brokerages, released this notice today:
"Today’s announcement by the Bank of Canada that it is reducing its key interest rate by a quarter point means that lenders will be under competitive pressure to decrease rates for variable-rate mortgages and lines of credit based on the prime rate. However, lenders differ in when exactly they adjust their variable rates. Call an Invis Mortgage Consultant for more information on how a particular lender may implement a variable rate change.
Fixed-rate mortgages are not likely to be affected directly by today’s announcement as their rates are influenced primarily by movements in the bond market and not the Bank of Canada’s overnight rate.
Rates on fixed mortgages have been fairly steady recently. Even so, mortgage shoppers can’t go wrong with a mortgage pre-approval with a rate hold. If rates drop, you’ll benefit from the new, lower rate. If rates on fixed mortgages rise during the rate hold period, you still have your original lower rate. "
This could be good news for some buyers or those re-mortgaging their homes. As the Bank of Canada continues to fight the recession worries, I wouldn't be surprised at all to see additional lowering of interest rates in the coming months.
All the best,
Neacol
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