Mortgage News: Bank of Canada leaves low overnight rate unchanged

Are you going to regret not taking advantage of these low rates? Could you be refinancing to save some hard earned money for your child’s education? Should you and your fiancé take the plunge and buy your first home before your wedding? Should you be shopping for an investment property in one of the many red hot small towns?

You’re probably wondering how this announcement impacts you.

Well, today’s news did provide some stable ground to start 2021 on. But before you jump into action remember just like a sunny day can suddenly turn stormy, economic forecasting can be far from accurate……especially in the midst of a global pandemic.

What we do know:

• rates remain stable
• next potential change announcement March 10th
• rates are still historically low

This decision shines a glimmer of hope for 2021 as it reflects the BOC’s cautiously positive outlook for the first quarter based on a long list of factors.

Some factors considered:

• quantitative easing will continue until the economic recovery is on track
• vaccine rollout shows promise for re-opening of economy
• fiscal and monetary policies are currently supporting the economy sufficiently
• second quarter predicted to be stronger IF restrictions are eased in the first quarter

Don’t worry if you have no idea what any of this means! We can break it down for you.

Contact us for obligation-free advice from one of our residential lending experts.