Low interest Rates
Low interest rates
The Bank of Canada announced today that they will decrease its overnight rate a half a percentage point. Other Canadian Banks traditionally follow suite which would place bank prime at 5.25%. It was the first 1/2-point change since 2001.
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A Call for Lower Interest Rates
When will fixed interest rates follow prime interest rates? To give you an idea at what the banks are making off of your money. If you bought 5 year bonds today you would receive 3.36% a year. Meanwhile, the banks are selling mortgage rates at around 6%. That means they are making a 2.64% spread every month on a mortgage. Read more
Prime Lending interest Rate
The Bank of Canada announced today that it will decrease its overnight rate a quarter point. Banks will follow and set their prime lending rate at 6.00% for variable mortgage rates.
