The Bank of Canada has come to a decision today, and that is to keep its historically low rate of 0.25%, however it has been noted that there are still significant fragilities in the economy despite the recent upswing.
The Bank of Canada is expected to keep the low rate in place in order to provide monetary stimulus to the economy.
The purpose of the central bank keeping the rate low is to help keep the cost of borrowing low, thus making it less expensive for companies and consumers to make purchases.
With that said, we will not be seeing any drastic changes in residential mortgage rates as the overnight lending rate is kept at this historic low of 0.25%..
However, by the time your current mortgage expires, it is likely that the rates at that time will be considerably higher than they are now.
With this said, the main reason we can see the rate change soon is if inflation does not stay at decent levels.
With that said let us just hope we see the rate stay this low until the time the Bank of Canada has noted, which is the middle of 2010.
Heleen Jacobsen
Broker of Record with InfoMarket Group GMAC Real Estate
www.infomarketgroup.com
