The Bank Of Canada has maintained their overnight rate again today. If you have a variable mortgage, line of credit or student loans, you can rest at ease that this will in essence mean no change to your interest rate. 

After the most recent election you will want to pay note to the changes that the Liberals proposed during the election. 

  • The First Time Home Buyer Incentive is here to stay. We could possibly expect some changes and adjustments to the program, but it is here to stay which is great news for those looking to have the lowest possible mortgage payment.
  • They also promised to create a national tax on vacant residential properties owned by non-Canadians who don’t live in Canada. What is unclear right now is the definition of ‘vacancy’ that this government will use. A dwelling that is never occupied, or a furnished second home that is vacant more than 6-months. Only time will tell us what this campaign promise means. 
  • They also promised to crack down on fraud and financial crimes in the real estate sector. What does this likely mean for you? As we are already seeing with lenders and banks, more paperwork from clients is required and a larger due diligence to insure all the i’s are dotted and t’s are crossed. Don’t worry that’s what I am here for! 

Now of course, with the fact that we are now in a minority government, we will have to wait and see what passes through the House of Commons. I will always do my best to keep you informed of any changes that will affect your current mortgage products. 

All things considered, the Bank will continue to monitor the extent to which the global outlook is changing,  as well as pay close attention to the expected slowdown in the Canadian economy and the impact that has on consumer spending and housing activity.  Increases in the banks rate are definitely not on the short-term horizon for sure but instead a hint to possible downward adjustments if needed.

Fixed rates have increased just slightly since the last announcement and are around 2.79% to 3.09% for a five-year fixed term. 

Based on the anticipation that the prime rate will still remain low BUT fixed term rates have increased slightly, I’d recommend that we chat – it might be worth switching to a fixed term if your current variable rate mortgage is higher than a fixed term.  Call me on 780-370-1490 so I can calculate what your new payment would look like and also if it is suitable for you.   

The next announcement will be December 4th, 2019.