Bank of Canada

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Blog by Ottawa Real Estate | Ottawa Homes for Sale | Ottawa Relocation | October 25th, 2011

Bank of Canada Keeps Key Rate Steady

Low Mortgage Rate

As expected by most economists, the Bank of Canada announced earlier today that it is keeping its key policy rate steady.

The prime rate at most lenders will stay at 3.00%, which means those with variable-rate mortgages will still enjoy relatively low rates. A new variable-rate mortgage can in many cases be obtained by qualified borrowers at Prime minus 0.20%, or 2.80%. Home equity lines of credit and variable-rate credit cards are also typically linked to the prime rate. The pricing for new fixed-rate mortgages is influenced by trends in the bond markets, rather than the central bank's key policy rate.

The Bank's next rate decision is scheduled for December 6.