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| Our Rate of the Day - 2.05% | ||
| TERM | OURS (oac) | POSTED |
| variable | 2.05% | 2.75% |
| 1 yr | 2.44% | 3.50% |
| 2 yr | 3.04% | 4.00% |
| 3 yr | 2.90% | 4.55% |
| 4 yr | 3.79% | 5.24% |
| 5 yr | 3.85% | 5.59% |
| 7 yr | 4.79% | 6.29% |
| 10 yr | 5.25% | 6.60% |
As expected, the Bank of Canada has increased the overnight rate from 0.25 % to 0.5%.
This means that if you have a Variable Rate mortgage your interest rate just increased by 0.25%. The Prime Lending rate is now 2.5%
We have some great rates from Lenders offering Prime -0.6%, which right now is only 1.9% interest. Still a great interest rate!
The Bank of Canada announced yesterday that they would maintain their overnight rate at 0.25%.
This means that the Prime Lending Rate will remain for now at 2.25%. The next chance for the Bank of Canada to raise their rate is June 1st. It is expected at that time that they will start to increase the rate.
Variable Mortgage rates, which are tied to the Bank of Canada overnight rate and the Prime Lending Rate, remain unchanged as a result.
Lenders are currently offering 5 year Variable Mortgages at Prime – 0.5%. This means that you can lock in these terms for 5 years. The Interest Rate of 1.75% would be your interest rate now until the bank of Canada raises their rate. Then your interest rate would go up, probably by 0.25%. Your monthly (or weekly or bi-weekly) payment will also go up.
Current 5 year fixed rates are sitting at 4.39 %(best rate out of 30 lenders). Only if the Bank of Canada increased their overnight rate 10 times during the term (5 year), would you be paying equal to or more interest than a variable rate mortgage. Remember that a variable rate mortgage can always be converted to a fixed rate mortgage at any time during your term as long as you stay with the same lender.
Not too much of a surprise here; most experts did not expect that the Bank of Canada would raise its overnight lending rate, and they did not.
http://www.bankofcanada.ca/en/fixed-dates/2010/rate_020310.html
OTTAWA — The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/4 per cent. The Bank Rate is unchanged at 1/2 per cent and the deposit rate is 1/4 per cent.
In the statement accompanying Tuesday’s decision, Governor Mark Carney and his rate-setting panel acknowledged that growth and inflation have been hotter than policy makers estimated in their January forecast, saying the economy’s 5-per-cent growth in the fourth quarter was “spurred by vigorous domestic spending and further recovery in exports.”
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