Surprise Move to Lower Key Lending Rate by The Bank Of Canada
In a very surprising move the Bank of Canada made a surprise announcement & decision this week by lowering the Prime lending rate by a quarter percent. All economists were forecasting to the rate to stay the same with indications of a rise later on this year or early next. They made this decision due to the dramatic drop in oil prices.
What does this mean for people borrowing money? Good news! People that are in variable rate mortgages will most likely see their interest rate drop and people looking at new financing have more reason to go with a variable rate over a fixed one. That is, of course if banks and lenders pass this rate drop onto their clients. TD has already stated it will not; at least right away.
If you want or need some advice on whether to go fixed or variable. I would love the opportunity to speak with you.
Tony Marchigiano @ Mortgage Alliance West. The Right Broker FOR THE RIGHT MORTGAGE!