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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 …

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How To (and should you) Delay/Defer Your Mortgage Payment

In Coronavirus, Financial Planning, Miss A Payment by Vancouver Mortgage Broker

Updated April 6, 2020   Canada’s banks, credit unions, trust companies, mortgage companies, and even some alternative lenders have announced they will be assisting borrowers during this disruptive time caused by the coronavirus pandemic. Lenders this week communicated they will be working with individuals that are in need of financial assistance due to job loss, business interruption, or quarantine from …

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UPDATE! Stress Test Changes on HOLD & $300 Billion Released

In Bank of Canada, Coronavirus, New Mortgage Rules, OSFI, Stress Test by Vancouver Mortgage Broker

With the recent developments of coronavirus and concerns it will have on the Canadian financial system and economy, the stress test changes scheduled for April 6, 2020 are now suspended.  The stress test will remain as is, with all mortgages qualified at the Bank of Canada benchmark rate (currently 5.19%). The Minister of Finance and the Office of the Superintendent …

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Surprise Additional 0.50% Rate Drop

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

Bank of Canada Lowers Rates a Full 1% in 10 days With building worry over the coronavirus the Bank of Canada has SURPRISINGLY reduced interest rates by an additional 0.50%.  Here is the official announcement: “The Bank of Canada today lowered its target for the overnight rate by 50 basis points to ¾ percent, effective Monday, March 16, 2020. The …

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Bank Of Canada Cuts Rates – Half Point

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

The BOC lowered it’s target for the overnight rate by half point which will result in reduced variable rates on mortgages and lines of credits. The Coronavirus has caused such a negative effect on economies worldwide and business/consumer fears will continue to place downward pressure on the Canadian and global economy. The Banks announcement states: “Before the outbreak, the global …