Bank of canada rate increases heavy

Hints That Today’s 0.25% Increase Is The Last

In Bank of Canada, Budgeting, Buying, Financial Planning, Interest Rate Trends by Vancouver Mortgage Broker


The Bank of Canada (BOC) changed it’s overnight rate to 4.50% this morning, an increase of 0.25% bringing prime rate with most lenders to 6.70%.

Today’s announcement came with a notable statement:
“If economic developments evolve broadly in line with the MPR outlook, Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases.”

Historically, after the governing body decides it’s time to hold the policy rate, rates no longer increase.  They then stay at their current level for a certain time period (typically at least 9 months), and then begin their decrease.

The last time the policy rate peaked was in 2007, and below is a chart of how interest rates played out.  The past isn’t a guarantee of the future but it may help in some decision making.

Date Bank rate
2006-01-24 3.75
2006-03-07 4.00
2006-04-25 4.25
2006-05-24 4.50
2007-07-10 4.75
2007-12-04 4.50
2008-01-22 4.25
2008-03-04 3.75
2008-04-22 3.25
2008-10-08 2.75
2008-10-21 2.50
2008-12-09 1.  75
2009-01-20 1.  25
2009-03-03 0.75
2009-04-21 0.50


Here is the Bank of Canada’s full announcement:

For those effected by these rate hikes please CONTACT US for a complimentary 15 minute consultation.




Fixed mortgage rates are falling (even though variable rates have continued their rise).  Most regular bank fixed rates are still sitting over 5% however they have come down.  Most insured mortgage offerings are now in the middle 4% range.  Fixed rates have been on a downwards trend since December and we should see fixed rates become more competitive as we approach the spring market.  All individuals looking to potentially borrow should inquire about locking in rates as economic news can spike rates in a matter of days.  For those looking at fixed rates consider locking into a shorter versus longer term (depending on your risk tolerance) as fixed rates could have peaked and there could be an opportunity to refinance into a lower rate in the next 12 to 24 months.  CLICK HERE to complete an application and secure a mortgage.