The Bank of Canada plays an important role in the Canadian economy. It’s in charge of monetary policy, which is no little burden. The bank’s current goal is to keep the inflation rate between one and three percent a slow and steady rate that helps steadily grow our economy and create jobs. November's inflation rate fell from 2.4 in the previous month to 1.7 which was below the market expectation of 1.8 percent. This was the lowest inflation rate since January 2018 and due mainly to slowdown in cost of transportation as gasoline prices declined. Economist originally predicted that the Bank of Canada would raise prime today, but instead due to the decline in inflation they have decided to hold at 3.95% Bank of Canada will meet again March 6th, 2019, inflation rate is expected to hold at 1.7% for a good part of 2019, leaving many economists predicting it will be some time before we see a raise in prime rate.
See how an increase in interest rates affects your mortgage payment and your ability to qualify. https://mccapp.ca/app/mccnereda-manion
What does an increase in prime mean to you? If you are currently in a Variable Rate Mortgage your monthly mortgage payments will increase. It will also mean you are paying off less of the principal and more interest. Are you further ahead to lock into a fixed rate or are you still making a larger dent in your mortgage with a variable rate? I would be happy to sit down with you to discuss all the options and just look at the numbers.
If your mortgage is a fixed term, the increase will not affect you at this time. Wait unless of course you are coming up for renewal. If your mortgage is less then 120 days to renewing let's talk about what steps we can take to help get you the best rate possible.