Tag Archives: Variable Rates

Bank of Canada Stands Pat

Yet again, the Bank of Canada decided to stand pat when it comes to interest rates. The Bank announced it would maintain its target for the overnight rate at 1% – a decision that spells good news for variable rate holders.  The primary reason for the decision was low inflation – something that is expected to continue for the remainder of 2014. While consumer energy prices and a low Canadian … Read More

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BOC Hints at Rate Decrease

Last week’s Bank of Canada (BOC) rate announcement was a stunning departure from the Bank’s long held position that rates had nowhere to go but up.  Since Stephen Poloz took over as BOC Governor he’s been steadily moving away from his predecessor’s position that a rate hike was imminent, but this recent announcement took many by surprise. Official Bank of Canada announcements are carefully drafted with subtle wording to prepare … Read More

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Variable Mortgage Rate Forecast – November 2013

Variable mortgage rates don’t appear to be going anywhere for at least the next 2 years.  And for the first time in 3 years there’s an equal possibility that the next variable rate change will be either up or down.  This change in the forecast for variable rates has more to do with the new Bank of Canada (BOC) governor, Stephen Poloz, than it does with a change in market … Read More

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Credit Cards Can Boost Your Credit Score

Credit cards can boost your credit score.  Having a healthy credit score is an important asset and can help you buy or lease a vehicle, borrow for investments and RRSP’s and secure a mortgage to buy that dream home.  Boosting  your credit score is particularly important to: Young Canadians with no credit activity New Canadians with no Canadian credit history Applicants coming off of a bankruptcy Applicants working to repair … Read More

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Stephen Poloz Balances the BOC

As expected, the Bank of Canada (BOC) kept the prime lending rate at 3% yesterday.  This decision moves the clock to 3 years and 1 month with no change to the overnight lending rate and in turn the prime lending rate.  Currently set at 1% the overnight rate is well below its 10 year average of 2.07% and significantly below the high of 4.50% hit in July of 2007.  The … Read More

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Variable Mortgage Rate Forecast

Variable mortgage rates are expected to remain at their current levels well into 2014.  Variable mortgage rates are tied directly to the banks’ prime lending rates which are in turn tied directly to the overnight rate set by the Bank of Canada. The Bank of Canada, in September’s scheduled announcement proclaimed that it has decided to maintain the target for the overnight rate at its current level of 1%.  It … Read More

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Variable Mortgage Rate Forecast – July 2013

It’s steady as she goes for variable mortgage rates for the foreseeable future.  Variable mortgage rates are linked to the overnight rate which is controlled by the Bank of Canada (BOC), and the BOC’s new chief, Stephen Poloz is maintaining the same cautious hand as outgoing chief Mark Carney. When asked when we can expect to see rates rise Mr. Poloz replied, “The honest answer is, we really don’t know”.  … Read More

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Variable Mortgage Rate Forecast – May 2013

Mark Carney’s last rate announcement came and went without much fanfare.  Variable mortgage rates will remain the same at least until the next announcement date on July 17th, 2013 and likely well into the latter half of 2014. The Bank of Canada’s language hasn’t changed much from its previous interest rate announcement stating that low rates “will likely remain appropriate for a period of time, after which some modest withdrawal … Read More

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Variable Mortgage Rate Forecast – April 2013

The Bank of Canada (BOC) maintained it’s target for the overnight rate at 1% this morning.  The net result is that there is no change to the prime rate of interest until their next announcement date which is scheduled for May 29th.  This is good news for variable mortgage rate holders and for those with home equity lines of credit.  Equally important as today’s interest rate decision is the language … Read More

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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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