Is This The Last Rate Increase?

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

Bank of Canada Increases Rates by 0.50%

The Bank of Canada (BOC) changed it’s overnight rate to 3.75%, an increase of 0.50% bringing prime rate with most lenders to 5.95%.

Read the full Bank of Canada announcement HERE

Are interest rates going to go down?

Here’s a video recorded September 15th discussing:  Click here for Video 

Since then inflation hasn’t come down as much as the Bank of Canada would like so they feel a 0.50% increase is warranted to slow the increase in prices of goods and services.

Many feel we are at the top of the interest rate hike cycle, however there could be an additional 0.25% to 0.50% increase in December as the Bank of Canada “expects the policy interest rate will need to rise further”.

Once the interest rate increases stop, we will likely see rates stay the same for 8 to 12 months (according to history and economists commentary) and then we could see them come back down.

VIDEO:  Mortgage Perspective

Here’s a VIDEO with some perspective covering:

– Fixed vs Variable

– Are we going to be in a 1980’s situation

– Perspective on “government” messaging

– Mortgage qualification guideline changes

Note:  Recorded September 28th when realtor Steve Croner stopped by the office.

Please see past posts for further answers to questions and perspective

Do reach out anytime if you’d like to discuss today’s market and feel free to share this email with anyone you think will find it useful.