I hope you have been enjoying this fresh, wintery weather and the dazzling colours and lights of the holiday season. I have some good news to add to your festive spirit!

As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada announcement on changes to their overnight rate which in most cases impacts your Prime Rate.

The Bank of Canada maintained their overnight rate, which in essence means no change to your interest rate. This is fantastic news which I’m sure will put a smile on your face this holiday season.

I wanted to spend a few moments to discuss your personal financial situation. 2016, 2017 and 2018 have been a roller coaster for our real estate market. Both from a mortgage legislation stand point, as well as the actual home prices and now a rising interest rate environment. I’m sure you might be confused on what this all means to YOU and your situation. You might be asking yourself how will all this impact you and your plans for borrowing funds in the future or even an upcoming mortgage renewal – whether it is refinancing to maximize the low interest rates and equity in your home, purchasing rental properties or moving up into a bigger home? Let’s connect for a pro bono consultation to review your current financial situation and start planning now for 2019!

The Bank continues to indicate that rates will continue to rise despite the slower momentum, but the pace of these increases will depend on a number of factors. They want to monitor the effect of higher interest rates on consumption and housing as well as global trade policy developments. The persistence of the oil price shock, the evolution of business investment, and Canada’s economic capacity will also be closely watched!

Fixed rates are up a bit since the last announcement, and range from 3.39% to 3.89% for a five-year fixed term.

In most cases, variable rate products are lower than current fixed term rates, however if this rising interest rate climate is making you anxious, locking in now might be a good idea. Call me to book a consultation and let’s discuss your current financial situation. I’ll be in touch again for the next announcement on January 9, 2019.