“The Bank’s policy
action is intended to provide insurance against these risks, support the
sectoral adjustment needed to strengthen investment and growth, and bring the
Canadian economy back to full capacity and inflation to target.” Poloz Quote
We are seeing 2015
move very quickly this year in a lot of different directions.
All commodities are taking a sharp turn downward in pricing, with Oil
leading the way. The Bank of Canada is taking a proactive approach to the
potential risks for the overall Canadian economy by reducing the
key rate to.75%. We do hope that the banks do follow and help the economy
by reducing the prime rate from 3.00% to 2.75%. The last time the Bank of
Canada did cut the rate, the banks did not pass the savings on to the consumer.
We will keep a close eye on the movements today from the banks.
The 5 year fixed bond
rate( which determines the 5 year fixed mortgage rates) has dropped below
1.00%. This means fixed rate could potential come down even lower than the
record lows that we currently have. I expect the lenders to be offering
very attractive Variable and 5 Fixed rates for the upcoming spring market.
Right now the lenders are making a lot of profit on the interest rate spreads
based on todays borrowing costs. Please keep in mind as you read through the headlines of the
press, Canada is a very diverse country, each province and even
regions within the provinces have their own economies. BC and
Ontario will fair very different than Alberta,
Saskatchewan for 2015. We will continue to monitor activities
and keep you informed.
For up to the minute rate updates call our office @ 1-866-983-7426
2 comments:
The mortgages are pooled together through a process called securitization. Securitization is a process where assets producing cash flows are combined and made into securities with their principal and interest payments being insured or guaranteed. See more at: www.omj.ca,ontario mortgage rates
Mortgage advice should be accessible (relatively!),and not accomplish you demand to go to the Bar instead of to the Bank!Here are some accessible answers to the best frequently asked Mortgage Questions. See more: www.omj.ca, best mortgage rates ontario
Post a Comment