Bank of Canada Holds Firm on Key Rate
The Bank of Canada announced yesterday that it will leave its key interest rate unchanged, as anticipated by most economists.
In its statement the Bank commented that its current key policy rate is consistent with achieving the inflation target over the medium term. The Bank forecasts that the Canadian economy will grow by 2.6% in 2007, 2.3% in 2008, and 2.5% in 2009, and that inflation will “return to 2% in the second half of 2008.
As a result of this decision, lending institutions in Canada are expected to keep their prime lending rate steady. However, people looking for a new variable-rate mortgage should note a recent mortgage rate trend on this type of mortgage has been adjusting upwards in recent weeks. Existing variable rate mortgages do remain unchanged but new variable borrowers are paying more.
If you would like to discuss how current trends in mortgage rates impact the best mortgage strategy for you, contact your Real Estate Agent or Mortgage Consultant. He or she can obtain a mortgage pre-approval if you’re wanting to buy a home with a rate hold of up to 120 days, therefore you will know how much you can afford.
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