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PostPosted: Wed Apr 12, 2017 9:33 am 
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Joined: Fri Feb 01, 2008 2:35 pm
Posts: 527
In this mornings interest rate announcement, the Bank of Canada announced that they will be maintaining their overnight rate one again, which is the rate prime is based on. The announcement came at 10am this morning. (April 12th).   This is exactly what was expected and anything else would have been a huge surprise.  

For now, the prime rate remains 2.70%. 

We have also seen discounts on variable rate mortgages increase (meaning lower rates) making variable rates an attractive option once again.  There are now variable rates as low as prime -0.90%. That's 1.80%!  This rate however is only available on high ratio purchases (LESS than 20% down payment). 

The lowest 3 year fixed rate has dropped to 2.29% and the lowest 5 year fixed is now 2.44%.  

Rates are now very dependent on the amount of equity in your home (or down payment if purchasing).  Lowest rates are found with LESS than 20% down payment, with rates pretty close to the lowest with 35% down (or equity position in your home).  Refinances, rentals, and properties valued at over a million will be priced higher.  Quoting mortgage rates is no where near as cut and dry as they were in the past. 

This morning's announcement relates to prime rate, however prime rate and fixed mortgage rates are unrelated. While variable rate mortgages and lines of credit are affected by prime rate, fixed mortgage rates are determined by bond yields.  We saw the bond yields increase steadily back in  October which caused multiple rate increases in the last two months of the 2016.  Fortunately, they started to drop late December and have now fallen well of their highs.  This resulted in some decreases.  Will they decrease any further?  We'll see!

You can follow the bond yields here: https://www.investing.com/rates-bonds/c ... bond-yield

You can read the full announcement here: http://www.bankofcanada.ca/2017/04/fad-press-release-2017-04-12/

The next interest rate announcement will be on May 24th, 2016.

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Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.ca
paulm@citycan.com
Lic#10532

Follow me on Twitter! http://www.twitter.com/paulmeredith


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PostPosted: Wed Apr 12, 2017 11:03 am 
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Joined: Mon Jul 10, 2006 7:54 pm
Posts: 5209
Location: HV
Wow. Do you think interest rates will ever go up again?

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What is the difference between ignorance and apathy? I don't know and I don't care.


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PostPosted: Wed Apr 12, 2017 11:05 am 
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Joined: Fri Feb 01, 2008 2:35 pm
Posts: 527
Eventually, but doesn't look like it's going to happen anytime soon.

(Hope all is well with you!).

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Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)
416-409-8009
http://www.easy123mortgage.ca
paulm@citycan.com
Lic#10532

Follow me on Twitter! http://www.twitter.com/paulmeredith


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