The Bank of Canada announced today that it is increasing the overnight rate .25 per cent given stronger than expected economic improvements.
This increase erases the two cuts the Bank implemented in 2015 in response to the effects of the oil price shock. The Bank noted that our economic growth is becoming more broad based and self-sustaining, and there is more widespread strength in business investment and exports. As a result, the Bank deems that “removal of some of the considerable monetary policy stimulus in place” is warranted. The next rate-setting day is October 25.
Homeowners with variable-rate mortgages will see their rate increase along with a possible modest payment increase. Lines of credit will be similarly affected. Get in touch if you have a variable-rate mortgage and have questions about your mortgage strategy and whether you should lock in or not. Or perhaps you need a new mortgage, are renewing, or are looking to improve cash flow by consolidating debt at lower-cost funds.
You should have confidence in your mortgage plan. It’s very important to work with an experienced professional who knows the right questions to ask to assess your situation and provide the direction you need to save money over the long term. You’ll also save yourself a lot of time and stress!
We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.