Tag Archives: Variable Rates

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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Bank of Canada Finally Admits Rates to Remain Low

In a speech at the Richard Ivey School of Business, Mark Carney admitted that the benchmark interest rate would remain at its current low of 1% into 2014.  While it’s been painfully obvious to industry players that the Bank of Canada (BOC) could not raise interest rates due to the serious negative consequences, Mr. Carney and the BOC had been threatening rate hikes for most of 2012.  This empty threat … 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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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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Strong Loonie Keeps Mortgage Rates Low

The Canadian dollar rallied to a 13 month high against the US greenback on news that the Federal Reserve plans to purchase bonds.  The US central bank indicated that it would maintain interest rates near 0.0% until 2015 and begin buying mortgage securities to fuel economic growth.  That announcement spurred investors to dump low yielding US assets in favour of more lucrative Canadian investments.  One Canadian dollar buys $1.03638 US. … Read More

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BOC Maintains Low Mortgage Rates

The Bank of Canada announced yesterday that it’s keeping its target for the overnight rate at 1% which will in turn maintain the variable mortgage prime rate at 3.0%.   This announcement comes with no surprise and was expected by every mainstream economist weighing in on the issue. The much anticipated upward pressure on interest rates has not materialized and is no longer on the radar.  Recent revelations of economic slowdowns … Read More

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Variable Mortgage Rate Forecast – July 2012

The next Bank of Canada interest rate announcement date is 2 weeks from today with zero chance of a rate change.  In fact, there’s very little chance of a variable mortgage rate change for the next 12 months. Just earlier this year Mark Carney was hinting at possible variable mortgage rate increases sometime this fall, but recent global economic events have reduced that likelihood to near zero.  Dismal growth prospects … Read More

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Variable Mortgage Rate Outlook – May 2012

Variable rate mortgages continue to offer great value, especially to those who locked in a discount to prime of 0.75% or more.  With our current prime rate of 3.0% these mortgages are at least 1% lower than current 5 year fixed mortgages rates.  Those who are shopping for a mortgage rate today however, have to contend with variable rate mortgages with no discount at all.  These new variable rate mortgages … Read More

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