Rate Watch

April 24, 2019

Jeff Laberge, Mortgage Broker  


  

  

The Bank of Canada maintained the overnight rate today and revised it’s growth projection down to 1.20%, which has caused government bond yields to fall.


This fall in government bond yields has erased the small gain in the yields which we have seen over the past couple of weeks. Overall the yields have fallen over the past 5 months, and they are likely to continue to fall, which will bring fixed rates down as well, as it appears that poorly planned economic policies enforced on the Canadian economy by the Liberal party are having adverse effects, specifically on real estate and the energy sector. 


Unless the Finance Minister comes to his senses and decides to create different rules for different real estate markets in Canada, rather than considering accelerated prices in just 2 cities as a national housing problem, I expect further declines in the real estate sector. 


The inability for many Canadians to purchase homes that they are able to afford, but are not qualified to purchase due to current mortgage rules, will have a long term negative effect on the Canadian economy. Home ownership is a cornerstone of a prosperous economy.

   


image15

The Prime Lending Rate is currently 3.95%

Historical & Scheduled Bank of Canada Rate Decisions

2019


January 9, 2019 -- no change


March 6, 2019 -- no change


April 24, 2019 -- no change


May 29, 2019 -- TBD


July 10, 2019 -- TBD


September 4, 2019 -- TBD


October 30, 2019 -- TBD


December 4, 2019 -- TBD



2018


December 5, 2018  --  no change


October 24, 2018  --  increase of 0.25%


September 5, 2018  --  no change


July 11, 2018  --   increase of 0.25%


May 3, 2018  --  no change


April 18, 2018  --  no change


March 7, 2018  --  no change


January 17, 2018  --  increase of 0.25%