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What will Mark Carney say this Tuesday?

By John Cocomile

Mortgage and Lending with Soho Mortgage Ltd

January 15, 2012 12:45 PM

Eight times each year, the Governor of the Bank of Canada makes an interest rate announcement. This coming Tuesday (Jan 17), Mark Carney will make his first announcement of 2012. Pundits anticipate no change, but the recent favourable data out of the US is good news for the Canadian economy. Further good news, and an improving situation in Europe, neither of which is anticipated, could result in a pullback on stimulus later this year ie. an increase to interest rates.

For a good read in the Globe and Mail, see article entitled Carney set to keep powder dry, stand pat on rates

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Julie Strassman

Keller Williams Advantage Realty - Toronto, ON

Hi, John,

I'd like to know what you think of BMO lowering their interest rate. How does it relate to first time buyers?

Thanks for your time!

Julie Cohn

Jan 17, 2012 12:33 PM

John Cocomile

Soho Mortgage Ltd - Toronto, ON

Thank you so much for your comment, Julie.

Earlier this week, the Bank of Montreal advertised a 5 year fixed rate mortgage at 2.99%. If you look at the terms of the offer, it isn't quite as good as it sounds. There are conditions, stipulations and restrctions.

The good news is, BMO's offer triggered a price war, of sorts. Most lenders have also dropped rates, and some lenders are offering very low 7 and 10 year terms. Wow...what a time to be a mortgage broker!

Sorry Julie....back to your comment. Buying a house and getting a mortgage is daunting, especially if you are doing it for the first time. Although BMO's special offer is a great rate, the restrictions regarding amortization are significant. Furthermore, the prepayment privileges are almost nil. In my humble opinion, first time homebuyers would benefit greatly from working with an independent mortgage broker, like me. The service is free, and most of all, the feedback is objective and unbiased.

Hope that helps, Julie. Happy blogging!

Jan 17, 2012 01:03 PM

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