Everything Real Estate

Bank of Canada Announcement
Today, the BANK OF CANADA announced that it was maintaining its target for the overnight rate at one per cent. The Bank Rate is correspondingly one and a quarter per cent and the deposit rate is three quarters of a per cent. Economists do not predict an increase in the overnight rate until the end of this year.

The financial institutions will also keep their Prime Lending rate at 3%. Fixed rates have remained steady at record low rates of 3.39% for a 5 year fixed term while variable rates are staying closer to Prime. Lenders are now offering special promotions of 4 year terms at 2.99%.

The next Bank of Canada Rate Announcement will be on March 8, 2012.

Did you know...

I recently found out that some of the big banks post their interest rate competitively but they calculate the compounded interest monthly as opposed to semi-annually which actually mean your paying more interest.

Let me compare rates and mortgage products with you.

deteriorating European economy and weak global growth will keep the Bank of Canada from raising rates for at least another year, though an interest rate cut looks highly unlikely, according to a Reuters survey.

The Reuters poll of 41 economists and strategists released on Tuesday showed the median forecast for the next interest rate hike was pushed back by three months to the first quarter of 2013 from the fourth quarter of 2012 projected in a November poll. The Bank of Canada’s target for the overnight rate — its main policy rate — has been at 1% for more than a year.

“The longer we spend struggling with slower growth and the longer we go without the Europeans coming to some cohesive policy solution, the worse the economic drag will be,” said David Tulk, chief Canada macro strategist at TD Securities.

“You get the sense that growth I think is likely to remain lower for longer, just like interest rates.”

Investors in the first quarter of 2012 are expected to focus on the heavy supply of eurozone debt coming due, with fears about a possible lack of demand at auctions. Italian and Spanish bond sales in particular are viewed as the next big tests.

Some Canadian economic data has also been worrisome. A Bank of Canada business survey on Monday showed an increasing number of firms are pessimistic about the rate of sales growth, further reducing pressure for the central bank to take interest rates higher.

Canada Benchmark

Bank of Canada benchmark rate for qualifying variable rate mortgages and 1-4 year terms is shown on the attached rate sheet as 5.29%

5 year Conventional must close by February 29, 2012

Ø High Ratio Rate: 3.25%

Ø Conventional Rate: 3.25%

Ø Deals must close on or before February 29, 2012

Ø New business only

Call me for all your real estate needs, I can handle the deal from begining to end 416-888-5397