Expect record low rates for spring

The Bank of Canada made an unpredicted move by cutting its overnight rate from 1% to 0.75% on January 21.  This is the rate that the Big Banks pay for interest when they borrow money from each other in the overnight market.  This rate in turn reflects the Prime rate which is the rate the Banks lend to their best clients.

The TD Canada Trust said it is not planning on following the Bank of Canada’s rate drop and lowering its Prime lending rate.  The Royal Bank and Canadian Imperial Bank of Commerce are reviewing their rates.  Once one of the Banks lower their Prime rate, most likely the others will follow.

So far the majority of lenders have held off lowering their mortgage rates but industry officials predict rates will drop just in time for the spring housing market. Because the Bank of Canada Government bond yields have dropped below 1% many are predicting interest rates may drop as low as 2.50% for a 5 year term.  The first lender who drops their rate will start the competition in the market and will win a good share of the new mortgage business.

If you have a mortgage coming due this year perhaps you should consider setting up a FREE strategy session to discuss your options.

Please call 250-862-1806 or you can email [email protected]

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About the Author

Laurie Baird and Tracy Head are mortgage brokers with Verico Complete Mortgage Services. Together they have over 45 years of experience in the mortgage industry.

As mortgage brokers, Laurie and Tracy spend time getting to know the people they work with and help them understand the mortgage process. They support their clients before, during, and after a home purchase.

Laurie and Tracy are able to offer their clients advice and options. With access to over 40 different lenders, Laurie and Tracy are able to match the needs of their clients with the right mortgage package. They work closely with their clients to find the right fit, and are around to provide support for years down the road!

Contact them at 250-862-1806 or visit:

Visit Laurie's blog at: https://www.okanaganmortgages.com/blog

The views expressed are strictly those of the author and not necessarily those of Castanet. Castanet does not warrant the contents.

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