Once Again, No Rate Change!
It's great news for variable rate holders as the Bank of Canada announced earlier today that it is keeping the overnight rate unchanged, which means the prime rate for most lenders should stay at 3%.
The Bank's statement noted that there is "widespread slowing of activity across advanced and emerging economies" and that in Canada "global headwinds continue to restrain economic activity."
As with recent releases, there was the hint that future rate hikes may be necessary through the cautionary statement that "some modest withdrawal of the present considerable monetary policy stimulus may become appropriate" in order to control inflation.
The Bank's next rate decision is scheduled for October 23.
As we head into the fall season, Canadians continue to benefit from historically low 5 and 10-year fixed rates. And we're starting to see the new OSFI guidelines being implemented at the major Canadian banks. Scotiabank just announced that their Free Down Payment mortgage will be discontinued September 15, 2012. Contact your mortgage broker if you would like a review of your situation in light of the new mortgage rules and guidelines and today's great rates
Let me know if I can be of any help - James
Information complements of Rick Tober @invis