Mark Carney at the Bank of Canada left it's key interest rate at the same very low level of 1% for the 12 consecutive time. This hasn't happened since the 1950's! This key interest rate is also referred to as the Prime rate and is what many lending facilities including Variable rate mortgages are affected by. Financial Institutions Prime rate is usually 2% higher than the Bank of Canada. So current Prime rate at most Canadian Banks is still 3%. 

This is good news for borrowers as it keeps interest costs and payments low. Mr. Carney did, however, note that borrowing costs could rise sooner than expected and stressed that signs that the Canadian as well as economies abroad are showing stronger signs of improvement since the bank's last meeting. Leading economists were predicting that this key lending rate might hold steady until the middle of next year. That may now have to be moved up as the economies, here and abroad, start to stand on more solid footing.

Talk to your Mortgage Advisor on what, if any, impacts this could have on you. Whether or not it makes sense to take a fixed or variable rate mortgage or maybe a little of both. 


The next Bank of Canada meeting is set for April 17th, 2012


Tony Marchigiano | Mortgage Specialist | RBC Royal Bank | Royal Bank of Canada | T. 604-505-7109 



*indicates required fields.

Meet the team

  • Will Pratt
  • Justin Sabbagh
  • Mike Wilcox

Mortgage Calculator

Purchase Amount:
Down Payment:
Interest Rate:
Payment Interval:
Mortgage Term (Years)
Total Payments:
Total Amount Paid:
Total Interest Paid:


The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.