The Bank of Canada did indicate that we will most likely see an increase later this year, possibly July and maybe again at the end of the year. With that being said, there are many indicators that they will continue to monitor to see if that will in fact be the case.
Banks are more aggressive than ever with the discount clients are receiving off of prime for variable rates. With a few lenders offering Prime minus 1% and even better with some banks, this is a great option for home owners and home buyers. Over the past 5 years we have experienced record low fixed rates which has led a lot of people into that territory but with the variable rate being so attractive again, people will pay far less interest in a variable rate mortgage than they will with a fixed in current market conditions.
CLICK HERE to read the full report from our economist Dr. Sherry Cooper
If you would like some advice and direction on whether a variable rate may be good for you, please contact me directly and I will be happy to review your current situation.