Quote:
Originally Posted by MillerTime GFG
There's a chance prime rate could go up once more in 2017, when the BoC next meets. Fixed rates have been trending up over the past few months as well, in the 0.30-0.40%-range, and are expected to continue to creep up.
The opposing force of course though is overall Canadian indebtedness. They don't want to shock the economy by rapidly raising rates. I personally don't think they will raise it again in 2017, but my crystal ball malfunctions sometimes. I would lean towards it happening in 2018.
There are some really good spreads right now with variable rates being offered by lenders, so it still can make sense in some scenarios to go that route.
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Just giving myself a pat on the back here when I predicted in the beginning of September that there would NOT be a rate increase this month, which was indeed the case this morning:
http://www.cbc.ca/news/business/bank...rate-1.4370809
Quote:
"The Bank of Canada shifted to a significantly more cautious tone on interest rates Wednesday, prompting a sharp descent by the Canadian dollar," said Don Curren, strategist at Cambridge Global Payments, "and perhaps presaging more weakness in the currency as expectations about … monetary policy evolve."
"As things stand today," TD Bank economist Brian DePratto said, "it appears that the urgency to increase rates has faded."
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It was thought by many a couple months ago that we would have another rate increase. I think this is an appropriate decision.
tl;dr - If you have a variable mortgage or HELOC, your rate will not be changing today.