Bank Of Canada Holds Rate Steady For 7th Consecutive Meeting
  
No surprises this morning, as the Bank of Canada elected, yet again, to hold their overnight rate steady at 2.25%. This means that Prime rate remains at 4.45%. While the "trade-war" with the U.S. was a hot topic, Tiff Macklem, Bank of Canada Governor, stated that the conflict in the Middle East is a bigger issue.
The U.S. imposed $28 billion worth of tariffs on Canadian goods last month, which the Canadian government countered dollar for dollar. Canada also expanded the economic relief program for businesses and workers who are impacted by the tariffs. However, Macklem said this morning that high oil prices resulting from the war in Iran are a a bigger risk to Canadians, as transport costs for goods and increased services costs impact inflation.
The Canadian bond market, which impacts fixed mortgage rates, has been bouncing around. Since bonds control longer term rates and are tied to the U.S. bond market, there is speculation that fixed rates could rise as America has seen soaring treasury yields. Having said that, lenders do set their own fixed term rates and rate specials have become the flavour of the season. Many lenders have been leaning into 3 year fixed rate specials, which I am quick to note would mature after the next Presidential election.
The long and short of it is that the Bank of Canada does appear to be on Canadians' side. They are being cautious about raising rates and putting too much pressure on consumer's wallets. I expect to see that trend continue as long as oil prices do not skyrocket, causing inflation to rise. For now, Prime stays stable, making variable rates very attractive. I expect short term fixed rates will also remain popular.
Jamie Moi - Mortgage Broker
BC PROPERTY CONNECT
The Land Title and Survey Authority of British Columbia (LTSA) is urging home owners to set up property alerts to notify them if scammers attempt to impersonate legitimate property owners.
LTSA created BC Property Connect a secure online service that allows owners to track property updates and protect their most valuable asset.
First, you need to download and set up the BC Services Card mobile app.
Then, you will receive a unique one-time code to set up your BC Property Connect account.
A bit of peace of mind.
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