Bank Of Canada Cuts Interest Rates
Bank of Canada continues to Hold Overnight Rate. Each rate cut was 50 BPS (half a percent).
That is cool and all but what does that really mean for you? How does this continue to impact you and your mortgage rate?
The Nuts & Bolts
- This means lenders will continue to hold their PRIME rate
- Right now this is PRIME rate only – what does that mean?
- It means that if you have a variable rate mortgage, your rate (and monthly payment) remains unchanged
- For reference, every 50BPS that the rate changes, will equal about $27 for every $100,000 of mortgage money that you have
- What if I have a fixed rate?
- Right now this does not impact you
- Your rate is the same
- This is PRIME rate only
- How long do we expect PRIME rate to stay this low?
- At this time, the Bank of Canada states their rate will remain the same until 2% inflation is sustainably achieved
- According to their July prediction, this may occur in the second half of 2022
We Are Always Watching The Rates
This means we will always get our clients the absolute best possible and sharpest rates available. If you have any questions and would like to discuss your mortgage specifically please give me a call. I always return my calls within 90 minutes and would love to hear from you.