September 7th is the sixth of eight scheduled meeting dates for 2016. The Bank of Canada governor, Stephen Poloz, is expected to leave the rate unchanged. The Bank of Canada rate affects Bank Prime rates and Variable mortgage rates. It also affects Fixed mortgage rates, indirectly.
Historically, Canadian mortgage rates have followed the US election year. As we lead up to an election, rates tend to lower than normal. And in the months after the election, rates go up. Not always, but this happens often.
Will this happen in 2017? Hard to say… however, we’ve seen the US Fed Reserve Chair, Janet Yellen, state that the US rate could go up as soon as Sept 21.
This may or may not happen. Ms. Yellen has hinted at a looming rate hike for months. (sort of reminds me of our previous Bank of Canada governor, Mark Carney, making numerous statements of a pending rate hike that didn’t materialize for years). Be careful, she could be known as “The woman who cried wolf”?
Stay tuned.. the next few months could be a bit of a roller coaster.. And as always, don’t panic. If you’re not sure, contact an experienced Mortgage Broker for neutral, unbiased advice.
Oh, by the way, did you know we are experiencing the lowest fixed rates in history? For those that have a mortgage, congrats. You should be paying less interest than ever before.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis 416 224 0114 firstname.lastname@example.org