As of yesterday January 21, 2015 the Bank of Canada has cut the overnight lending rate by 0.25%. This marks the lowest interest rate in country’s history which is great news for those Canadian consumers looking to borrow for a home. The prime lending rate is soon to follow dropping down to 2.75% from 3.00% from where it has stayed for the past 4 years.
However we have not heard from the banks yet whether or not they are planning to match that rate drop. Historically it takes a day or two for them to move so we should expect some new very soon. According to McLister, editor of Canadian Mortgage Trends prime and variable isn’t the only rates that might be dropping. Due to the oil prices dropping drastically and so promptly it seems that the fixed rate might drop as low as 2.35% unless the banks decide to hold onto profits. “Bond yields have been falling like a knife,” he said.
All we can do now is wait and see what the banks will decide to do to know exactly how the current Canadian mortgage holders will be effected and to what extent .
For further information please contact
Robert Clancy, AMP,
VERICO Safebridge Mortgage Solutions
SAFEBRIDGE Financial Group
Tel: 416 899-1467
Fax: 1866 385-4049