Bank of Canada Rate Announcement: Mortgage Market Insights
In light of today's Bank of Canada interest rate announcement, I weighed-in with Ratehub.ca, Canada's leading online marketplace for mortgage rates, to share their insights on how this policy announcement affects mortgage consumers, and recommendations for borrowers.
'As expected, the Bank of Canada maintained their overnight rate at 1.75 per cent,' said James Laird, Co-founder of Ratehub Inc. and President of CanWise Financial mortgage brokerage. 'The Bank continues to monitor the Canadian energy sector, as well as the impact of international trade conflicts on the global economic outlook. On a positive note, the Bank is pleased by indications of strong economic growth including a healthy labour market and stabilizing housing market. The Bank recognizes the positive impact that low long-term mortgage rates have had on housing activity.'
Laird also commented that, 'this announcement contains welcome news for Canadians considering a variable rate mortgage, as the Bank has signaled that the current policy interest rate remains appropriate. In the absence of major economic changes, the Bank seems intent to maintain this policy interest rate in the near future.
Five-year fixed rates are also currently at historic lows, according data from Ratehub.ca. Canadians looking for a mortgage should speak to a mortgage professional today to lock in a rate and protect themselves against any potential rate increases.'
Note the graphic below from Ratehub.ca demonstrating that 5-year fixed rates are currently at historical lows. The best 5-year fixed rate on Ratehub.ca today is 2.54%. The last time 5-year fixed rates were at or lower than 2.54% was in July 2017.