Another good-news day! No Bank of Canada rate change.
October 23, 2013 | Posted by: Donna Morrison
Since September 2010 the Bank of Canada has held the key rate steady. And today was no different. The Bank of Canada is staying the course and not changing the benchmark rate.
Today's announcement noted that "downside risks to inflation assume increasing importance" and "the Bank must also take into consideration the risk of exacerbating already-elevated household imbalances. With these considerations, the Bank is maintaining its substantial monetary policy stimulus.
If you've got a variable rate mortgage, prime should stay at 3%. The next rate setting day is December 4.
Eight times a year, the Bank of Canada sets the rate that governs each lender's prime rate. The lenders base their decision on this rate because it influences their own borrowing. Variable rate mortgages and lines of credit move in conjunction with the prime lending rate. Fixed rates are different and are based on the bond market.
Whether you are purchasing, refinancing or renewing your mortgage, we can help you decide whether a fixed or a variable rate mortgage will work best for your situation.