Tag Archives: VRM

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

Posted in Blog, Government Policy, Mortgage Rates | Tagged , , , , , , , | Leave a comment

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

Posted in Blog, Government Policy, Mortgage Rates, Personal Finance | Tagged , , , , | Leave a comment

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

Posted in Blog, Mortgage Rates, Personal Finance | Tagged , , , , , | Leave a comment

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

Posted in Blog, Featured, Government Policy, Mortgage Rates | Tagged , , , , , , , | Leave a comment

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

Posted in Blog, Government Policy, Mortgage Rates, Personal Finance | Tagged , , , , , , | Leave a comment

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

Posted in Blog, Government Policy, Mortgage Rates | Tagged , , , , , , | Leave a comment

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

Posted in Blog, Government Policy, Mortgage Rates, Personal Finance | Tagged , , , , , , | Leave a comment

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

Posted in Blog, Mortgage Rates | Tagged , , , , , | Leave a comment

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

Posted in Blog, Government Policy, Mortgage Rates | Tagged , , , | Leave a comment

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

Posted in Blog, Mortgage Rates | Tagged , , , | 1 Comment