The Bank of Canada has again maintained their overnight rate which means no changes to your interest rate. The Prime Rate remains at 3.95% and this is used to calculate interest on variable rate mortgages, line of credit and/or student loans.
Barb Pinsent from Mortgages By Barb says “Our Fort Mcmurray spring market has been in full swing now and interest rates are once again at historical lows. Now is the time to discuss getting into your own home or what your options are relating to your mortgage renewal.”
Today’s announcement from the Bank of Canada combined with recent data has reinforced the view that the slowdown in late 2018 and early 2019 was temporary, although global trade risks have increased. In this context, the bank continues its assessment that they will take a gradual approach to rates increasing guided by incoming data – something that we have all known for a long time! Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any one time, so there won’t be a large significant increase all at once.
Fixed rates have dropped quite a bit over the last few weeks to as low as 3.04% for a five year fixed term*. If the net interest rate on your current variable is the same as or higher than the current fixed term rates right now, even though the prime rate will still remain low for a while now, it might be time to chat about your options including potentially converting to a fixed term. Barb advises that “converting to a fixed term isn’t right for everyone as other factors are to be taken into consideration, such as payment changes, income and future pans, but speaking with a Mortgage Professional will help you to make an informed decision.”
Based on this recent announcement, and the anticipation that the prime rate will remain low through the spring market, we will continue to see the market remain hot over this period. Barb specializes in walking you through the steps of your new mortgage or mortgage renewal with ease, so take advantage of the low interest rates and contact Barb today on 780-370-1490 to discuss your options. The Bank of Canada will meet again on July 10, 2019.
*Interest rates are subject to change without notice.