Once again, no big surprise at all that the The Bank of Canada once again maintains it's overnight rate following this morning's interest rate announcement which came at 10:00am (October 22nd, 2014). The rate has been unchanged since September 2010 adding to the longest unchanged streak in history. This means the prime rate remains unchanged at 3.00%. Economists have been predicting that the prime rate will remain unchanged until sometime in 2016 and i've seen some predictions of even longer than that. This is great news for anyone with variable rate mortgages or those who are trying to decide between fixed and variable at this moment.
This decision doesn't affect fixed mortgage rates. While variable rate mortgages and lines of credit are affected by prime rate, fixed mortgage rates are determined by bond yields which have been trending downward over the past month.
5 year fixed mortgage rates have now dropped to as low as 2.79%. Another option to look at is a 3 year at 2.49% which can save you thousands of dollars over that period.
We are now starting to see deeper discounts to variable rate causing it to become popular once again. You can now get a variable rate for as low as prime -0.80% (2.20%). It may also be a great time to consolidate any higher interest debt into your mortgage to take advantage of such low rates and lowering your overall monthly payment and amount of interest you are paying significantly.
You can read about the Bank of Canada's decision here:
http://www.bankofcanada.ca/2014/10/fad- ... 014-10-22/The next interest rate announcement will be on December 3rd, 2014.
_________________
Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.capaulm@citycan.comLic#10532
Follow me on Twitter!
http://www.twitter.com/paulmeredith