Economic Update – November, 2017 Mortgage Rules

Bank of Canada holds benchmark rate

The Bank of Canada has recently announced that it is holding the overnight rate steady after raising it twice this past summer. The Bank noted that the recent strength of the Canadian dollar has slowed inflation and export growth. This has caused “substantial uncertainty” around geopolitical developments and the renegotiation of NAFTA. Therefore, the Bank has deemed that “the current stance of monetary policy is appropriate.” This is good news for homeowners with variable-rate mortgages and lines of credit. The next rate-setting day is December 6th.

IMPORTANT – New Mortgage Rules Effective January 1, 2018

It’s best to purchase before the end of the year if you have a 20 per cent down-payment. Otherwise, you might have to buy 20 per cent less home! If you need to pay off significant credit card debt, are thinking of a large renovation, or want to buy an investment property, you should also act before year end. These new mortgage rules will reduce your purchasing power and affect your ability to access your home equity. Get in touch ASAP to understand the changes and review your options!

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Therefore, please contact us for these unpublished rate specials.

Terms Posted Rates Our Rates
6 Months 3.14% 3.10%
1 Year 3.04% 2.64%
2 Years 3.24% 2.54%
3 Years 3.44% 2.74%
4 Years 3.89% 2.94%
5 Years 4.99% 3.04%
7 Years 5.30% 3.69%
10 Years 6.10% 3.74%

 

Prime Rate 3.20%
5-year Variable 2.35%

Thank you for taking the time to read our blog. Be sure to like us on Facebook for regular news and updates.

Rasha Ingratta & Mortgage Associates

By Mortgage Intelligence

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