Bank of Canada Increases Overnight Rate

The Bank of Canada met on July 11 and increased their overnight rate which led to lenders increasing their Prime lending rates in response. This rate only impacts variable rate mortgages and Home Equity Lines of Credit (HELOC).

As shown in the graph above, a history of the overnight rate going back to 1993 shows we are still at historic lows and repeating a familiar pattern. With this increase, Prime went from 3.45% to 3.70% for most lenders.

From a broader perspective, this is good news because it means the overall economy is growing.  

If you are a variable rate mortgage or HELOC holder and have questions, are considering locking in your mortgage or switching to an even lower variable rate mortgage, feel free to call me to discuss your options.

The next meeting/rate decision of the Bank of Canada is September 5th 2018.