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Bank of Canada Rate Announcement - March 03, 2010 - Mortgages Rates

Blog by Tridac Mortgage | March 3rd, 2010

The Bank of Canada met this morning and announced that they would keep the prime rate at the current historical low. The BOC governor, Mark Carney, acknowledged that growth and inflation have been hotter than policy makers estimated in their January forecast, saying the economy's 5-per-cent growth at the end of 2009 was “spurred by vigorous domestic spending and further recovery in exports.” It appears that the bank will hold fast on their commitment to keep prime low until the end of June.  Click here to read the full Press Release.

What does this mean to you?
If you are in a variable rate mortgage your monthly mortgage payment will remain unchanged. The prime rate will remain at 2.25%.
Should I lock in?
Over the next 3 months leading up to the end of June you will want to be a little more aware of the tremors in the market to determine if you should lock in. Currently fixed rate mortgages remain below 4% and unless you feel that your cashflow is currently stretched, we don't recommend that you convert your variable mortgage into a fixed rate mortgage yet.
Mortgages are very dynamic and the guidance that we offer is based on the circumstances of each individual. If you would like to review your mortgage to make sure that you are still on track please call us to have a quick chat. 416.461.0204
If you are thinking of locking in your variable rate mortgage and would like to know what current rates are be sure to visit Christopher's blog SonOfABroker.com where he reviews rates every Monday in his Monday Mortgage Minute video.