This morning the Bank of Canada decided to keep it's policy rate of 2.75%. Many lenders and advisors were betting on a slight decrease like we've been having over the past few months, but Governor Tiff Mackle, citing concerns over tariffs and uncertainty in the Canadian economy, said the bank will be holding for now while proceeding carefully.
How does that affect you and your upcoming mortgage renewal or home purchase?
If you are currently on a variable rate, you'll find that your overall interest rate will not be changing until at least the next BOC announcement.
If your are on a fixed rate nothing will change until your next renewal, BUT if it's coming up to renewal time or you are working on a new purchase and looking at a fixed rate option, just know that these rates are based on bond yields rather than the Bank of Canada rates. If bond yields start trending upwards again, you'll find fixed rates following suit.
Call me if:
-You are shopping for a new home and you can't decide whether to go with fixed or variable rates.
-Your current mortgage is coming up for renewal and you are nervous about what's to come.
-Your mortgage is currently locked in on a fixed term but the rate you are locked into is quite a bit higher than it is now....Let me run the math on whether it's worth breaking the term and paying the penalties. It can be cheaper to switch.
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