Bank of Canada Increases Benchmark Rate

On September 7th, 2017, The Bank of Canada announced that it is increasing the overnight rate by .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 25th.

Due to this overnight rate increase, homeowners with variable-rate mortgages will notice that their rate will rise along with a possible, modest payment increase. Lines of credit will be affected in a similar manner. Get in touch with us 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. This can save you a lot of time and stress in the long-term.

Below are our rates as of September 7th, 2017:

Terms Posted Rates Our Rates
6 Months 3.14% 3.10%
1 Year 3.04% 2.44%
2 Years 2.84% 2.54%
3 Years 3.44% 2.69%
4 Years 3.89% 2.84%
5 Years 4.64% 2.89%
7 Years 5.30% 3.39%
10 Years 6.10% 3.79%

 

Prime Rate 2.95%
5-year Variable 2.20%

 

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Rasha Ingratta & Mortgage Associates

By Mortgage Intelligence

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