In a brief statement, the Bank of Canada announced today that it is keeping the benchmark rate unchanged, the same level it’s been since mid-2015.
The Bank highlighted weak wage growth and temporary inflation weakness as examples the economy still has room to improve, but also pointed to strength in business investment, and that “consumer spending and the housing sector continue to be robust on the back of an improving labour market”. The Bank also noted that recent government measures on real estate are creating a more sustainable outlook for household debt, but has yet to have a “substantial cooling effect on housing markets”. The U.S. economy had a “weak” first quarter but is expected to strengthen and “rebound in the second quarter” while the global economy “continues to gain traction.” Taking all factors into consideration the Bank “judges that the current degree of monetary stimulus is appropriate.”
This announcement means there should be no change to the prime rate. Great news if you have a variable-rate mortgage or line of credit, need a new mortgage, are renewing, or want to save thousands by consolidating debt at the lowest-cost funds. Or perhaps you are thinking of using home equity to invest in a rental property or second home, or cost effectively complete renovations.
Canadian homeowners and buyers continue to adjust to the new mortgage rules, which have caused mortgage rates to be very complicated. Quick rate quotes are not very reliable! That’s why it’s so beneficial to work with an experienced mortgage broker who has access to a wide range of lenders and knows the right questions to ask to assess your situation and provide the best mortgage for your needs. Save yourself time and stress; don’t just ask what the rate is, have a conversation instead.
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 Please contact us for these unpublished rate specials.