Greg-Shirley-Steve Hamre

Bank of Canada Holds Key Rate

Great news for Home Owners......................It is a wonderful time to be a Real Estate Buyer.



While the Bank of Canada announced earlier today that it is keeping its key policy rate steady, it hinted that a rate hike may be on the horizon as the Canadian economy grows closer to full capacity. 

What is the impact of the Bank's decision on mortgage rates?  The prime rate at most lenders will remain at 3.00%, which means those with variable-rate mortgages will still enjoy relatively low rates.  A new variable-rate mortgage can be obtained by qualified borrowers at Prime minus 0.75%, or 2.25%.  Home equity lines of credit and variable-rate credit cards are also commonly linked to the prime rate.  The pricing for new fixed-rate mortgages is influenced by movements in the bond markets, rather than the central bank's key policy rate.  

The Bank's next rate decision is slated for September 7.  For more information contact the Hamre Team at RE/MAX in Ottawa, ON through our web site at hppt://www.WeKnowOttawa.com