Bank of Canada Increases Overnight Lending Rate

 

Bank of Canada Increases Overnight Lending Rate

Hello Shawn As expected the Bank of Canada increased their overnight lending rate by 0.25%, raising the Prime Lending Rate for most if not all of the lenders to 2.70%. Here are a couple of things that you need to know. Prime Rate Change: Most if not all of the lenders changed their prime lending rate from 2.45% to 2.70%. This change is effective March 03, 2022 for most lenders. This means if you have a Variable Rate, your payments will change for your next payment, that or the amount paid to interest will be modified. This depends on the type of Variable rate you have. Who does this affect: This change will affect every borrower with a variable rate mortgage or those wishing to obtain a new Variable Rate mortgage. This change will not change the spread on the variable rate (example Prime Minus 1.0%). The Variable Rate change does not affect Fixed rates. When will the Payment Amount Adjust: For most lenders the payment will adjust on the 2nd regularly scheduled payment following the rate change date. For monthly payments, the April 1st payment in most cases won’t change, but the payment May 1st will reflect the new payment amount. For Weekly payments, assuming payments are on Friday, if you had a payment on Friday March 4th, it would not change, for the payment on Friday March 11th, the payment would reflect the new amount. My opinion on Variable Rates: Although Variable rates have increased, Variable rate mortgages are still really low. You could expect a rate of 1.70% on a new Variable Rate mortgage, possibly lower. This is still quite a bit lower than fixed rates which are pushing the high 2% to low 3% range. So if you have any tolerance to a little risk, then these still might be for you. Further, depending on your circumstances it may be a better option, for example if you were planning to sell and break the mortgage, you would do much better with a variable rate as they are cheaper to get out of then fixed rates. Save the Date: The Bank of Canada is scheduled to meet again on Wednesday April 13, 2022.   Please don’t hesitate to contact me if you would like any additional information or if you are simply in need of any advice with respect to this or anything mortgage related. If you think this information could help out a friend or a family member, I would really appreciate it if you would forward this email or provide them with my contact information. I will look after them as if they were a friend or family member to myself.

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Phone / Text 403-828-1838 Email: mortgages@shawnmooney.com Website: www.shawnmooney.com

Some conditions may apply. Rates are subject to change. Subject to lender / insurer approval.

Mortgage Rate Update | 11-Jan-17

Awesome rates available. There is still time before the rule changes Jan1st.  Contact me to get pre-qualified in 5 minutes. Not sure, get a pre-approval so you have time to think about it.

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As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney | Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

 *Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  QC refers to quick close.  Contact me for the best rate for you!!

Mortgage Rate Update | 06-Feb-17

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney | Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  QC refers to quick close.  Contact me for the best rate for you!!

Mortgage Rate Update | 05-Dec-16

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney | Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

Mortgage Rate Update | December 2, 2016

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

Big 5 Bank Raises Prime Lending Rate

November 1, 2016

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Shawn Mooney | Bayfield Mortgage Professionals Ltd.

TD Canada Trust announced today it would be increasing it's prime lending rate to 2.85% from 2.70%. This move was unprovoked as the Bank of Canada recently left its overnight lending rate the same as it's been for a long time.  

This interest rate hike effects Variable rate mortgages and home equity lines of credit (secured line of credit). So let's say you had a variable rate mortgage with a rate of prime -0.5%, your rate would have been 2.70% - 0.5% working out to 2.20%. With TD's changes your rate will go up to 2.85% (new prime) - 0.5% working out to 2.35%, an increase of 0.15%. 

This move represents in my opinion the single biggest challenge to variable rates and home equity lines of credit. The banks have the ability to adjust their prime lending rate whenever it suits them. It makes this rate very unpredictable. This move is also an invitation by other lenders to do the same. I would not be surprised in the least of in the next few days you saw that others followed suit. It is possible they all will. I have never seen an environment where the prime lending rate was different among the lenders. 

Fixed rates are awesome right now, check them out here. It may be a good time to consider locking in to a fixed rate. Fixed rate mortgages are not subject to the same rules so you don't ever have to worry about the lender increasing your rate during the term. If you are considering switching to a fixed rate, don't except the first rate offered. Do your research to make sure there isn't better out there. One of the best features to the variable rate is that you can get out of most of them with a penalty of 3 months simple interest so there really isn't any surprises. 

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

Mortgage Rate Update | Shawn Mooney | Bayfield Mortgage Professionals Ltd.

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

Mortgage Rate Update - October 3, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

Mortgage Rate Update - September 26, 2016

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

Mortgage Rate Update - September 19, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney |Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

Mortgage Rate Update - September 13, 2016

As always, you can keep updated on current interest rates at www.shawnmooney.com/rates

Shawn Mooney | Bayfield Mortgage Professionals Ltd.

Broker of Record

Your Mortgage Broker for Life

Bus. # 403-945-8769 | Mobile # 403-828-1838

Email: mortgages@shawnmooney.com

Website: www.shawnmooney.com

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

Bank of Canada Update

Bank of Canada Interest Rate Update

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Bank doesn't budge

The Bank of Canada announced today that it's maintaining the target for the overnight rate at 1/2 per cent due to slower-than-projected global growth, a weaker-than-expected US economy, and a poor second quarter for the Canadian economy.

While things didn't look great this past quarter, there is good news. For one? Global financial conditions have become more accommodative since July. Secondly, the reason for Canada's poor GDP performance in the second quarter was due largely to the Alberta wildfires in May-leading the Bank to expect a healthy economic rebound in the third quarter as oil production recovers, Alberta starts to rebuild and the Canada Child Benefit begins to spark consumer spending.

On the inflation front, things are in line with the Bank's expectations. Total CPI is below the two percent target and core inflation is sitting around two percent. Given all these factors, the Bank decided that the current target for the overnight rate is just right-and it's standing pat.

Yet again, this is good news for variable rate mortgage holders. If you're in the market for a new mortgage and are wondering if a variable mortgage is right for you, give me a call! I'd be happy to chat with you and determine if such a move makes sense for your specific situation.

Mortgage Rate Update - September 6, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

#Mortgage #Rate Update - August 29, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

#Mortgage #Rate Update - August 23, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

#Mortgage #Rate Update - August 17, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

#Mortgage #Rate Update - August 09, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

#Mortgage #Rate Update - August 4, 2016

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

#Mortgage #Rate Update - 25-Jul-16

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!

#Mortgage Rate Update

*Denotes Change in Rate**Rates subject to change without notice.  Some conditions apply.  O.A.C.  Rates could be customized maturity and must close by a certain date.  Contact me for the best rate for you!!