BoC Leaves Lending Rates Unchanged

Posted on October 16, 2007 at 3:46 pm
Filed Under Financial Markets, Mortgage Planning

The Bank of Canada met earlier today and decided to leave key interest rates at a stand still.

According to the current market conditions we are seeing in both the US and Canada, the Bank of Canada believes “that the current level of the target for the overnight rate is consistent with achieving the inflation target over the medium term.”. That’s good news for those of us looking to borrow money in the next couple of months, but that doesn’t mean that staying on top of our current mortgage strategy is not necessary either.

Your Take-Away: Variable rate discounts from a variety of lending institutions have been decreasing over the past week or two. Although key lending rates are not on the rise as of today, it may feel like they are to those of us who believe in the value of a variable rate mortgage. If you are looking to restructure your current mortgage or are purchasing a new home within the next few months, this would be a very good time to take a serious look at whether a variable rate or fixed rate mortgage would be best for your current situation.

Enjoy the rest of your day.

Elisseos

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