Rates Slashed!

By
Real Estate Sales Representative with iPro Realty Ltd., Brokerage

The Bank of Canada surprised some today by sharply cutting its key benchmark rate by 75 basis points (3/4 of a percent), at the high end of analyst predictions.  This matches a 50 year low, last seen in 1958!

Ok, the central bank says Canada is entering a recession.  On the other hand, this is positive news to homeowners with variable rate mortgages tied to prime before discounts disappeared and banks started quoted prime-plus.  Some clients are enjoying prime minus 1% and prime minus 0.6% on their mortgages.

 

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