As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and at 10:00 am EST, Wednesday July 16th, 2014 the Bank of Canada again did what we expected them to do … they continue to maintain their overnight rate and in fact are not likely to make any change until possibly 2016 now! What this means to you is that once again the prime rate on your mortgage, line of credit or student loan will not change and remains at 3.00%.
This is fabulous news but are you still making the most of the low payments you have! If you have any high interest credit card debt that you can’t pay off in full each month, it might be a good time for us to chat about a possible debt consolidation into your mortgage to save you some unnecessary interest… get a clear financial outlook void of expensive debt and start your summer off right and debt free!
The Bank of Canada said “the global economy is on a lower growth track than was foreseen” so they will continue to wait and see economic growth continue on a more upward direction before increasing rates.
Fixed rates haven’t changed much at all since the last announcement and are around 2.99% to 3.09% for a five year fixed term.
The next announcement on any change to the prime rate is September 3rd, 2014 at which time I’ll be in touch again.
I wonder if I can ask a favour – this is a great time for first time home buyers who are thinking of purchasing to start with a pre-approval plan now to get them on track and save unnecessary interest. It is advisable to start planning ahead and I would be happy to provide an idea of closing costs and monthly budget payments to start those that you know on the path to home ownership. Also, if you hear a friend or family member talk about going thru a financially tough time – maybe I can help with some budgeting, credit counselling and debt consolidation options for them. In either of these cases, would you mind passing my contact information on to them – this is very much appreciated.
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