As expected, the Bank of Canada announced today that it is not changing the benchmark rate.
The announcement noted that although “the fundamental drivers of growth and future inflation appear to be strengthening, inflation is expected to remain well below target for some time, and therefore the downside risks to inflation have grown in importance. At the same time, risks associated with elevated household imbalances have not materially changed.” With these considerations, the Bank is maintaining its substantial monetary policy stimulus.
Great news if you’ve got a variable-rate mortgage; the prime rate stays at 3%.
The next rate-setting day is March 5. Eight times a year, the Bank of Canada sets the rate that governs each lender’s prime rate. Variable-rate mortgages and lines of credit move in conjunction with the prime lending rate. Fixed rates on the other hand are based on the bond market.
Whether you are looking to purchase, refinance, or renew, we can help you decide whether a fixed or variable-rate mortgage will work best for your situation. Or you may find that a hybrid mortgage, which is part fixed and part variable, is better suited to your needs.
We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact me for the unpublished rate specials.