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PostPosted: Wed May 24, 2017 9:13 am 

Joined: Fri Feb 01, 2008 2:35 pm
Posts: 527
The Bank of Canada announced this morning 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. May 25th). This is exactly what was expected and anything else would have been a pretty big 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 -0.95% on high ratio mortgages (less than 20% down payment).

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.  As they have been dropping lately, there have been some recent drops to fixed rates. The 3 year fixed is now as low as 2.15% (high ratio purchases or those with 30% or greater down payment / equity. Property value must be under $1 million).  

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/2017/05/fad-press-release-2017-05-24/

The next interest rate announcement will be on July 12th, 2017.

Paul Meredith
Mortgage Broker
CityCan Financial (est 1976)

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

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