Interest rates to stay low for longer than expected…

The, soon to be, ex-Bank of Canada Governor, Mark Carney, is leaving us with a present…  During yesterday’s Rate Announcement, the first of eight regularly scheduled rate meetings this year, Carney said the economy is growing at a slower pace than expected….  we having a cooling housing market….. inflation remains low and is not an immediate concern….  Last but not least, he expects the economy will not reach it’s full capacity in late 2014 and that withdrawing any monetary policy stimulus is less imminent than previously anticipated.

End result, no rate hikes are expected til 2014…  These comments come as a bit of a surprise given the Bank of Canada has wanted to raise rates for the past 2 years.  Well, maybe it’s Carney’s way of giving us a departing present….Let’s not look a gift horse in the mouth.

So how do we take advantage of this?   How do we benefit?  Interest rates will remain low… To me, it’s simple….if you are looking to buy your first home… a move up home…. or an investment property…  doesn’t it make more sense to borrow when rates are low?    Of course… Don’t pay attention to those that are predicting the sky will fall…   We’ve been hearing that for the past 7 years.    If it fits your budget… if the numbers work… then do it.  If the numbers don’t fit, then don’t push it…. Wait until you are ready.

Simple advice… but then things can be simple and uncomplicated if we just let them be.

As always, I welcome your comments and questions.

Steve Garganis 416 224 0114 steve@mortgagenow.ca