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BOC Holds & Supports Continued Low Rates

In Bank of Canada, Interest Rate Trends by Vancouver Mortgage Broker

Bank of Canada (BOC) maintained the overnight rate at 0.25% today meaning no change to variable rate mortgages & lines of credits. The BOC states: “As the economy recuperates, it will continue to require extraordinary monetary policy support. The Governing Council will hold the policy interest rate at the effective lower bound until economic slack is absorbed so that the …

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CMHC to change their name

In First Home, Stories by Vancouver Mortgage Broker

The Canada Mortgage and Housing Corp. Will be changing their name in the coming months. According to Evan Siddall “the housing agency needs a new name to reflect how its mandate has changed to be about more than just home ownership and mortgages” They feel as though the name overemphasizes the financing of home ownership and not enough to highlight …

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BOC remains at target rate of 0.25%

In Bank of Canada, Coronavirus, Interest Rate Trends, Stories by Vancouver Mortgage Broker

The Bank of Canada maintained it’s overnight target rate at 0.25 %. This means all variable rate mortgage and credit line holders will remain steady in their variable rate. Prime rate is currently 2.45% with the majority of Canadian lenders (with some being at 2.60%).  The bank is also continuing its quantitative easing program, with large scale asset purchases of …

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Bank of Canada maintaines overnight rate

In Stories by Vancouver Mortgage Broker

As expected the bank of Canada held interest rates steady. The messaging in today’s announcement confirms that if you are on a variable rate mortgage or considering getting a new mortgage on a variable rate, you can your rate should remain the same for an extended period of time, we think a minimum of two years. In addition the announcement states:  …

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CMHC New Mortgage Approval Policies

In Stories by Vancouver Mortgage Broker

CMHC released some changes to their mortgage approval policies that are effective today, July 1st. This will affect some buyers with less than 20% down payment. These changes are: Reduced GDS/TDS ratios (amount of money earned as a percent of liabilities owed monthly). The lower this ratio the lower a mortgage a buyer qualifies for. Some will see a reduced …

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Bank of Canada overnight rates stay steady at 0.25%

In Stories by Vancouver Mortgage Broker

The Bank of Canada has maintained its target for the overnight rate of 0.25%. Prime rate remains at 2.45% for most lenders (some lenders are charging a prime of 2.60%). The necessary efforts to contain COVID-19 have caused a sudden and deep contraction in economic activity. CPI inflation is expected to be close to 0 percent in the second quarter …

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Bank of Canada Maintaines overnight rate of 0.25%

In Stories by Vancouver Mortgage Broker

the Bank of Canada has maintained its target for the overnight rate of 0.25%. With its prime rate of 2.45% The Bank of Canada has taken measures to improve market function. This helps ensure that households and businesses continue to have access to the credit they need during this difficult time. Tiff Macklem has been appointed as Governor of the …

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Bank of Canada Reduces Overnight Rate An Additional 0.50%

In Bank of Canada, Coronavirus, Interest Rate Trends by Vancouver Mortgage Broker

BOC drops rates 1.50% in 4 weeks For the 3rd time this month the Bank of Canada has reduced the overnight rate by 0.50%.  For variable mortgage (and line of credit/loan) holders, watch lender communications for reduced prime rates. The overnight rate is now at 0.25% … very close to zero.  If these rate drops continue will we follow Europe who has negative interest …

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Coronavirus Causing A Whirlwind Of A Week

In Bank of Canada, Coronavirus, Interest Rate Trends, Miss A Payment, OSFI, Stories, Stress Test by Vancouver Mortgage Broker

Summary of announcements made this week from the coronavirus pandemic.  Some may assist you financially and we have provided easy to reference links… MARCH 13, 2020 Bank of Canada surprisingly reduces the overnight rate an additional 0.50% (after reducing it 0.50% 10 days before) bringing the overnight rate to 0.75%.  The overnight rate reflects the prime rate that borrowers lending …