Bank of the Canada again maintained their overnight rate which means no change to variable interest rates. Let’s not forget that interest rates are still low and this is a great time to take advantage.  As you might be thinking ahead to the fall market this is still a great time to buy!

Summer is here and there is nothing better than enjoying some time off with family and of course the warm outdoors.  But is your mind racing about other possibilities; maybe buying a home, renovations such as a new kitchen or finishing the basement or maybe you just have a bunch of debt that you’d like to eliminate.  Now is the time to get serious about looking into these options, especially as rates are still low! Chat with Barb Pinsent from Mortgages by Barb about your options. Barb says “I’d be happy to make those plans into reality or save you unnecessary interest.

The Bank of Canada decision was influenced by recent data which 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 to remain optimistic but it will pay particular attention to developments in the energy sector and the impact of the trade conflicts on the prospects for Canadian growth and inflation.  Basically, holding off on any increases in the foreseeable future.  Remember, that any increase to the prime rate since 1992 has only been by 0.25% at any ONE time, so you won’t see a large significant increase all at once.

Barb explains “Fixed term interest rates have dropped quite a bit over the last few weeks with a range of 2.79% to 4.29% for a five-year fixed term. What does this mean for you? 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.” 

Remember, Converting to a fixed term isn’t right for everyone as other factors are to be taken into consideration such as payment change, income and future plans such as renovating, moving etc.   With this in mind, and if having a fixed payment is important to you, contact Barb on 780-370-1490. Barb can calculate what your new payment would look like and also if it is suitable for you.

The next Bank of Canada announcement will be released on September 4, 2019.