Midway transformer fire
Oil company fined
Strata smoking fines tossed
UN workers charged 
Trudeau in Saskatoon 
Doctors protest tax change
$620 million for Ukraine 
5 die crossing channel
Jury finds railway at fault 
Tourism operators struggle 
Nude Beverages sells line
Wealth gap widening
Leafs even series
Cristall gets pro look
Warriors even series in OT
Hozier surprised by #1
Trainor to replace Perry?
Swift breaks Spotify record
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]
This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.
