Bank of Canada & the Fed Bank (U.S.) Rate Decisions. Where Are They Headed?

Both the Bank of Canada & the Fed's made the decision to keep their prime lending rates exactly where they are for now. This is due to numerous things including their target for inflation which is still below 2% (their current target rate); this is, for the most part, because of lower energy prices due to the drop in oil price. 

The Fed did hint at the possibility of moving their rate up in December but we've heard that many times before. Same here in Canada, although the current forecast does not have Canada's prime lending rate rising until the latter part of next year, 2016.


What does this mean for mortgages? Rates should stay low for a while yet. Although there is a possibility for them to start to rise before the current forecast with the election of a new government, The Liberals, who plan on running a deficit over the next few years to put people to work on replacing and rebuilding infrastructure here in Canada. This will give a much needed boost to the economy. How much and when remains to be seen?


As always if you have any questions regarding the above or any other home financing questions please reach out to me.






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  • Will Pratt
  • Justin Sabbagh
  • Mike Wilcox

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