Tag Archives: Variable Rate Mortgage

Variable Mortgage Rate Forecast – March 2013

Variable mortgage rates will stay where they are well into the Spring and Summer markets.  The Bank of Canada’s next meeting date to review and adjust the overnight lending rate is April 17th when there is almost no chance of a rate change.  In fact, the prime lending rate is so well balanced right now that we are seeing some economists call for a rate drop.  Overall, the vast majority … Read More

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Variable Mortgage Rate Forecast – February 2013

Variable mortgage rates are tied to your banks prime lending rate which is in turn tied to the Bank of Canada’s overnight rate. Now that Mark Carney has pledged to not raise the overnight rate for at least a year it’s made my job of rate forecasting considerably easier. Variable mortgage rates aren’t going up! Having said that, economic conditions can change and I will continue to check in on … Read More

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Carney Confirms Continued Low Rates – Finally!

On Tuesday, the Bank of Canada held the overnight rate at 1.0% for the 27th consecutive month.  This came as no surprise to anybody, but what was a surprise and equally refreshing was Mark Carney’s confirmation that interest rates would remain low well into 2014. For the past 27 months the Bank of Canada didn’t touch the overnight rate, but kept threatening to raise rates soon.  As the Dread Pirate … Read More

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Variable Mortgage Rate Forecast – January 2013

Variable mortgage rates, unlike their fixed mortgage rate counterpart, are under the control of the federal government via the Bank of Canada.  The bank of Canada recently published the following 2013 schedule of meeting dates to review the overnight rate. January 23 March 6 April 17 May 29 July 17 September 4 October 23 December 4 Given the state of both the domestic and foreign economies its unlikely that there … Read More

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Variable Mortgage Rate Forecast – December 2012

The Bank of Canada last met December 5th and as expected they made no change to the overnight lending rate and as a result no change to variable mortgage rates.  The prime lending rate in Canada is currently at 3.0% and new variable rate mortgages are being offered at Prime to Prime less 0.35%.  The next scheduled meeting date for the bank of Canada is January 24th, 2013 and it … Read More

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Bank of Canada Maintains Mortgage Rates

The Bank of Canada announced today that it’s leaving interest rates unchanged.  The target for the overnight rate will remain at 1% which will in turn leave the prime lending rate at 3.0%.  This decision was largely expected by industry participants who believe that the prime lending rate will maintain it’s current level well into 2013. What wasn’t clear was the message the Bank was going to relay in it’s … Read More

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Mark Carney’s Departure won’t Impact Mortgage Rates

Mark Carney has been named governor of the Bank of England and will leave his current job as the head of the Bank of Canada mid-2013.  Many Canadians take great pride in the fact that one of our own leaders has acquired such international respect as to be hired to oversee a foreign bank.  No doubt that this appointment speaks volumes of the respect he’s enjoyed internationally and his departure … Read More

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November Variable Mortgage Rate Forecast

The Bank of Canada’s last interest rate announcement was October 23rd and as expected there was no change in the overnight interest rate.  Variable mortgage rates are tied directly to the prime rate of interest which is in turn tied directly to the overnight interest rate.  No change in the overnight rate means no change to your variable rate mortgage. The Bank of Canada only meets 8 times per year … Read More

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Variable Mortgage Rate Forecast – October 2012

Variable mortgage rates are dependent on bank prime lending rates which are dependent on the Bank of Canada interest rate.  The Bank of Canada has 2 scheduled interest rate announcement dates remaining for 2012; October 23rd and December 4th. The current interest rate has remained unchanged for the past two years, the longest period of static interest rates since the mid 1950’s.  The chance that this streak will break in … Read More

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HELOC Changes Imminent

One of the proposed mortgage rule changes coming down the pipe is lower limits on Home Equity Lines of Credit (HELOC’s).  Earlier this year the Department of Finance not only lowered maximum amortizations and restricted the limits on mortgage refinances, they also initiated several mortgage rule changes for federally regulated financial institutions.  Although many of the proposals were discarded, a couple of significant changes are nearing implementation, one of which … Read More

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