Good news from the Bank of Canada if you have a variable rate mortgage or line of credit. In their last meeting for 2010 the Bank of Canada has decided to leave the prime rate unchanged citing that while the global recovery is rolling out as expected there are some increased risks. You can read the full press report here.
What does this mean to you?
If you are in a variable rate mortgage or have a line of credit your monthly payments will not change. The retail bank prime rate will remain at 3.00%.
Should you lock in?
Although there was a slight increase to fixed rate mortgages last week, today it is still possible to lock into a fixed 5 year at 3.79%. Despite the low rates we don't see any significant reason to convert a prime minus variable rate mortgage as the prime seems to be stable as well as fixed rates.
However, if you arranged a mortgage during the brief period while variable rate mortgages where prime + then their are some options you can consider.
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, we'd love to hear from you. 416.461.0204