Monday, May 31, 2010
Canadian Prime Rate Increase?
A lot of talk in the last couple of days about the Bank of Canada making a choice on the direction of the prime rate. I think too much press. If they do raise it by .25% as expected, life will go one. This is not a pattern of high interest rate increase in the Canadian mortgage market. In fact the 5 year fixed rate has dropped in Canada mortgage market. We should actually be below the 4.00% mark fir the benchmark 5 year fixed rate. A .25% increase in the Canadian prime rate amounts to a $39 increase per month on a mortgage amount of $300,000. I believe Canada economy will survive after this increase.