Every major economist in the country expects the Bank of Canada to hike its key lending rate by 1/4% tomorrow (19 out of 19 economists to be exact, according to a Bloomberg survey).
What economists are most interested in, however, is how the BoC’s statement will read. If it’s overly cautious we might see a drop in yields (which is good for mortgage rates). If the statement has a more positive economic tone, then yields could rise. Here’s more on that from:
- The National Post: What to expect from Bank of Canada
- The Star: Carney’s Balancing Act
The BoC has four rate decisions left this year, including tomorrow’s. We’ll report on the Bank’s announcement just after 9:00am ET.
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Last modified: April 26, 2014
I’ve actually made a decision based on the assumption of tomorrow’s meeting. I opted for a fixed over a variable with the speculation that I would have saved only 3-4 grand in a 12 month period. The fixed also allowed me to avoid the penalty fees which is a major factor in the overall savings. However, when my new loan matures I will still go with a 1 year fixed. That’s just my strategy.
1 year left on prime -0.4 open. I have a 5 year fixed locked in until the end of the month @ 3.69 or 3 year fixed @ 3.30. I am in quite a dilemma. I am meeting with a local broker on wednesday, however I would appreciate suggestions on which way to go. Ride out the variable or lock in and have the security without to shabby of a rate. We currently pay @ a 5.0% fixed rate. These payments seem fine and probably could reasonably pay up to approx 6.5% without really shaking up our lifestyle. Balance owing 182000. Amoritization approx 12 years.
Thanks in advance for your opinion.
How did a fixed mortgage allow you to avoid the penalty over a variable mortgage?
If I convince you to stay variable can I have the 3-4 grand?
What an odd decision. You could only save…
Like money comes from trees.
interesting article:
http://toronto.ctv.ca/servlet/an/local/CTVNews/20100719/interest-rates-economy-100719/20100719/?hub=TorontoNewHome
Why do you keep posting that story? It is not that interesting.
Will your lender let you do some in the 3.69% rate and some in a variable rate? If so, what is the variable rate they would give you?
Anon…the article related to both posts. (so on put it on both) Its on the very subject you came on here to look at.
you must have been the only one to have read it twice….highly intelligent individual you must be.
If you have nothing to add to the subject we are talking about, leave your digits off the keypad.