Variable Rate Mortgage Sigh Of Relief
“Variable Rate Mortgage Holders Can Breathe Easier With Bank Of Canada Maintaining The Status Quo”
Yesterday the Bank of Canada announced that its maintaining its overnight lending rate at 1%.
This is good news for variable rate mortgage holders as most variable rate mortgages move directly with any changes in the over night rate.
The last number of months have produced considerable speculation about if and when rates are going up, and while most economist believe that interest rates are going to be going up, its not likely to happen right away.
A return to a more traditional overnight rate of 2% to 3% is now being pushed back to 2013 by some pundits.
It was only a month or so ago that a rate hike at the end of May seemed like a forgone conclusion. But then again, it shows just how much can change in a short period of time and how unpredictable interest rate movements really are.
For more information about the B of C’s announcement, here is the link to their site … http://www.bankofcanada.ca/2011/05/press-releases/fad-press-release-2011-05-31/
The next scheduled interest rate decision date is not until July 19, and the current consensus from those supposedly in the know is that there isn’t likely to be any further rate increases until at least September.
But, of course any predictions with respect to interest rates are subject to change.
So in the mean time, those holding variable mortgages, or considering one can continue to enjoy the near record run we’ve had in Canada at the low end of the rate spectrum.
Hopefully the trend will continue well into the future.
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About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel