What is Really Going on with Interest Rates Currently?

It is nearly impossible to turn on the TV or radio and not hear about the COVID-19 pandemic.  The economic impacts of this virus are being felt around the world, and Canada is no exception.  During March 15 - March 31 - we saw an astounding number of rates changes DAILY!  Thi sought to have been a record somewhere.

Over the last month we have a dramatic drop to Prime rate, which is currently resting at 2.45%, and there is a lot of confusion about what interest rates are actually doing. 

Although Prime rate is at a historic low, interest rates have been on the rise since March 19 due to the overall volatility in economics. Lenders are no longer offering discounts off Prime Rate for variable rate mortgages and Insurable fixed rates are between 2.49%- 2.69% and Uninsurable up to 3.29%.  

On the whole, financing is very affordable so do not let this deter you from taking action. However, if your existing mortgage is under 3.29% now is not a time to refinance as fixed rates are currently higher than that.  If you NEED the money to access your equity - we can look at doing a blend and extend where we don;t break your current mortgage but get you new money. 

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