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Bank of Canada Leaves Rate Unchanged - Now What?
Posted on June 11, 2008 at 5:54 pm
Filed Under Financial Markets, Mortgage Planning
This is somewhat old news by now, but it could provide some interesting changes.
As you already know, the Bank of Canada (BoC) shocked many Canadians yesterday by leaving the overnight lending rate unchanged at 3%. This was especially surprising because most, if not all, Analysts were expecting a 0.25% rate cut with fairly strong confidence. To top it off, they also made it clear that there is currently no need for “further monetary stimulus” which says they don’t really feel it is necessary to continue the downward trend of cutting rates moving forward.
Your Take-Away: With the BoC focusing on curbing or slowing down inflation rather then stimulating the economy, there is a very good chance that we will start to see fixed mortgage rates begin to climb over the course of the next six months. If you currently have a mortgage in place, it would be a great time to revaluate your terms in regards to staying with or changing too a fixed or variable rate mortgage. On the other hand, if you are looking to buy your first home or structure a new mortgage, a simple pre-approval could save you literally thousands of dollars over the next five years.
With the recent volatility we have seen, now is a great time to talk to your Mortgage Advisor…it could save you some very real money!
Until next time, have a Wonderful Wednesday!
Chris & Elisseos
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