Earlier today, the Bank of Canada again did what we expected them to do… they maintained their overnight rate. What this means to you is that the prime rate on variable rate mortgages and lines of credit continue to remain low.
Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision:
The global economy has unfolded broadly as the Bank projected... “The economic expansion in the United States is progressing at a gradual pace. Europe is in recession and recent indicators point to a continued contraction. In China and other major emerging economies, growth has slowed somewhat more than expected, though there are signs of stabilization around current growth rates. Notwithstanding the slowdown in global economic activity, prices for oil and other commodities produced in Canada have, on average, increased in recent months. Global financial conditions have improved, supported by aggressive policy actions of major central banks, but sentiment remains fragile. In Canada, while global headwinds continue to restrain economic activity, domestic factors are supporting a moderate expansion”
The overall economic growth in Canada is expected to pick up and return to full capacity by the end of 2013. Based on this outlook, the bank has indicated they are unlikely to increase their rate in the foreseeable future although very much dependent on the continued trend. A change is likely to occur sometime in 2013 but remember any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.
Fixed rates have seen a slight dip sitting at around 2.98% - 3.09%! Still amazing rates for those looking to lock in.
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I wonder if I can ask a favour – rates are still so low right now and so it is a great time for first time homebuyers, buying an investment property or consider refinancing especially as I can hold rates for up to six months, if you know of someone that is looking for advice on their mortgage options, with no obligation, would you mind passing my contact information on to them – this is very much appreciated. We build our business from introduction from great clients like you!
Jared Dreyer - Dreyer Group Mortgage Team
Your Mortgage Professionals
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Dreyer Group Smiles is a program dedicated to giving to facilities that provide safe and transitional housing to children and youth in the Fraser Valley of British Columbia. By providing funds to these programs, Dreyer Group will make a meaningful difference to kids who otherwise may not have a roof over their heads, or hope for a bright future.
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REFINANCING RATES or
NEW HOME PURCHASE
2.98 % 5 Year Fixed Rate
3.89% 10 Year Fixed Rate
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All rates quoted are on approved credit.
• Statistics Canada released new household balance sheet data this week that showed the household
debt-to-income ratio is 163%, well above the 152% previously reported. However, households are also richer than previously thought and other measures of indebtedness were improved.
• Overall, the economic backdrop in Canada has softened. On the back of weak manufacturing and a cooling housing market, Canadian real GDP growth is estimated to remain stuck at a sub-2.0% pace for a fourth consecutive quarter in Q3. Below trend economic growth has resulted in subdued inflation. The Bank of Canada’s core measure of inflation rose by just 1.3% year-over-year in September.
• The combination of soft inflation and economic growth is likely to keep the Bank of Canada rate increases on hold
through the first half of 2013. TD Canada Trust
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