Chana Fay Charach, AMP
President, VERICO Synergy Mortgage Inc.
Office: 604.269.9419
Email: Team@SynergyMortgage.ca
Rate Announcement
Date: 04 / 17 / 2012
Bank of Canada (BoC)
Interest Rate Announcement -
April 17,2012
As you know, variable rate mortgage, lines of credit and/or student loans are all based on the Prime Rate and as promised, here is your personal update from us on the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts Prime Rate.
At 9:00 am EST, Tuesday April 17th, 2012, the Bank of Canada again did what we expected them to do… they maintained their overnight rate. What this means is that the prime rate on floating mortgages or lines of credit will not change and remain at 3.00%. This is great news as we will continue to have great low rates and borrowers will continue to make the most of the low payments.
Here is an excerpt of the announcement from the Bank of Canada and what they had to say about their decision:
“The profile for global economic growth has improved since the Bank released its January Monetary Policy Report. In particular, the international price of oil has risen further and is now considerably higher than that received by Canadian producers. If sustained, these oil price developments could dampen the improvement in economic momentum. The external headwinds facing Canada have abated somewhat, with the U.S. recovery more resilient and financial conditions more supportive than previously anticipated. As a result, business and household confidence are improving faster than forecast in January. The Bank projects that private domestic demand will account for almost all of Canada’s economic growth over the projection horizon. The recovery in net exports is likely to remain weak in light of modest external demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.”
Will Rates Go Up Earlier Than Expected?
The overall economic momentum in Canada is slightly better than expected and the Bank expects that growth will slowly continue. Based on their slightly more positive outlook, they have indicated they may start to increase their rate in the foreseeable future although very much dependent on the continued trend. This change may occur late 2012 at the earliest based on today’s announcement. When it does start to increase, it is expected to be gradual and controlled in line with economic recovery, both in Canada and globally. Remember any change to the prime rate since 1992 has only been by 0.25% at any ONE time.
Fixed rates have changed only slightly at around 3.29% to 3.49% for a five year fixed term.
Based on this recent announcement, and the anticipation that the prime rate will still remain low for a while now, borrowers with lines of credit and variable rate mortgages are still lower than the 5 year fixed so they may decide to continue to float, others may decide to lock in as the fixed rates are very attractive as well.
Please call us if you would like to compare your options as we can calculate what your new payment would look like and also if it is suitable for you to make a change. We will provide a detailed spread sheet showing the interest you would save if you were to switch lenders, and / or products. The next announcement on any change to the prime rate is June 5th, 2012 at which time we'll be in touch again.
Warm Regards,
Chana Fay Charach, AMP
President, VERICO Synergy Mortgage Inc.
Office: 604.269.9419
Email: Team@SynergyMortgage.ca
PS: I wonder if I can ask a favour – rates are still so low right now and so it is a great time for first time homebuyers, buying an investment property or consider refinancing especially as we can hold rates for up to six months, if you know of someone that is looking for advice on their mortgage options, with no obligation, would you mind passing our contact information on to them – this is very much appreciated.
Key Interest Rates
Qualifying Rate 5.44%
Prime Rate 3.00%
Next BoC Meeting June 5, 2012
LOAN TERM OUR RATES
1 Year 2.74%* - 2.89%*
2 Year 2.74%* - 3.09%*
3 Year 2.94%* - 3.19%*
4 Year 3.09%*- 3.29%*
5 Year 3.24%*- 3.29%*
7 Year 3.95%*- 3.99%*
10 Year 3.95%*- 4.99%*
5 Year Floating Rate 2.90% (Prime - .10%)
Borrowers must qualify on approved credit and rates are subject to change without notice. All rates shown are the annualized percentage rate (APR) and do not reflect all lenders. Rates may vary from lender to lender.
*Special conditions apply, please call us for more information.
View Live Rates
Phone: 604.269.9419
Website: vancouvermortgagebroker.com/
Email: Team@synergymortgage.com
