The Bank of Canada held it’s overnight rate today keeping mortgage variable rates the same.
They will however be reducing the weekly net purchases of Government of Canada bonds to $3 million weekly as of April 26, 2021 (currently purchasing $4 million weekly). This could put some stress on fixed mortgage rates to rise.
The Bank also hinted of an earlier possibility of overnight rate hikes which, if their current forecast prevails, will see prime rate (and therefore existing variable rates) increase in the 2nd half of 2022 versus a 2023 increase which was previously predicted.
Interest rate forecasts change as economic conditions change, and currently the Governing Council is seeing improvements in economic conditions with positive economic activity and vaccinations progressing.
If you are currently seeking a new mortgage you are encouraged to check in with your mortgage professional to protect yourself from any rate increases that could be on the horizon.
FOR THE FULL BANK OF CANADA ANNOUNCEMENT CLICK HERE: BANK OF CANADA ANNOUNCEMENT