On April 21, 2009, the Bank of Canada (BoC) announced their last rate drop (see the BoC rate announcement). This brought down the overnight rate to 1/4% which is the lowest the BoC is able to go. In that announcement, the Bank committed to hold the rate until “the end of the second quarter of 2010″.
It was no surprise that the forecasts from the major lenders were in line with the Bank of Canada’s announcement
- BMO expects interest rates to start rebounding in 3rd quarter of 2010 – BMO Economic Research Focus dated April 24, 2009
- CIBC World Markets forecasts the BoC to hold the overnight rate at its current level of 1/4% until the 3rd quarter of 2010 – CIBC World Markets April 28, 2009
- RBC forecasts the BoC staying at its current level of 1/4% until the 3rd Quarter of 2010 – RBC Financial Market Forecast dated April 3, 2009
- TD Bank did not provide a forecast – Read TD Economics Commentary dated April 21, 2009 of the BoC announcement to maintain the current overnight rate at 1/4%
Is it important to work with a mortgage professional that is up-to-date on interest rate trends? Absolutely! The interest on your mortgage will be the biggest expense in your home purchase. You’ll need a mortgage broker that thoroughly understands interest rate trends and how this affects your choice of your mortgage programme.
Stay up-to-date on interest rates and home buying trends by signing up for my e-newsletter at www.bcmortgage.ca/opt_in.htm .
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