Tag Archives: Bank of Canada

Bank of Canada lowers benchmark rate down to 0.50 per cent

                                           

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Come visit Realtor Rosalie Drysdale Website each week for my weekly Mortgage Rates.

Bank of Canada lowers benchmark rate

The Bank of Canada announced today that it is lowering its key rate down to 0.50 per cent given faltering global growth, a lower outlook for Canadian growth and increased downside risks to inflation. The Bank notes that “additional monetary stimulus is required to help return the economy to full capacity and inflation sustainability to target.”

Great news if you’ve got a variable-rate mortgage, need a new mortgage, are renewing, or want to consolidate debt at the lowest cost funds. Get in touch today for help determining whether a fixed or variable-rate mortgage will work best for your situation.

The next rate-setting day is September 9th.

 

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

3.14%

3.10%

1 YEAR

2.89%

2.29%

2 YEARS

2.84%

2.19%

3 YEARS

3.39%

2.34%

4 YEARS

3.89%

2.54%

5 YEARS

4.64%

2.59%

7 YEARS

5.30%

3.39%

10 YEARS

6.10%

3.84%

Rates are subject to change without notice. OAC E&OE

Prime Rate

2.85%

5 yr variable

2.20%

Looking at Purchasing that New Home, Needing a Mortgage,

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

Contact Peter Paley at Invis Mortgage

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

Interest rate cut should benefit real estate

bankofCanada

Wednesday, January 21, 2015
 
Real estate is positioned prominently among industries likely to benefit from the Bank of Canada’s interest rate cut announced with today’s release of the quarterly Monetary Policy Report. The unexpected 0.25 per cent reduction trims the overnight interest rate to 0.75 per cent in an effort to counter major hits in the resources sector and the slide of the Canadian dollar.
 
“Although the interest rate cut largely reflects the deterioration of Canadian economic fundamentals due to the recent plunge in oil prices, lower interest rates are broadly supportive for values in interest-rate sensitive sectors like real estate,” observes Carl Gomez, senior vice president and chief economist with Bentall Kennedy.
 
Bank of Canada Governor Stephen Poloz calls the move insurance against deflation and financial instability. Meanwhile, premised on assumed oil prices of US $60 per barrel, the Monetary Policy Report forecasts the Canadian economy will strengthen in the second half of 2015 with real GDP growth averaging 2.1 per cent this year and 2.4 per cent in 2016.
 
“While it is true that a lower profile for interest rates may exacerbate household imbalances at the margin by encouraging more borrowing, the far more important effect will be to mitigate those imbalances by cushioning the decline in income and employment caused by lower oil prices,” Poloz said at a press conference Wednesday morning.
 
From an investment perspective, real estate analysts say the drop in bond yields seen immediately upon the Bank of Canada’s announcement should further solidify real estate’s status.
 
“Real estate cap rate spreads over bond yields had already widened recently. The bond yield has been dropping, but cap rates have held relatively firm,” says Chris Langstaff, senior vice president, research and strategy, with LaSalle Investment Management. “Now the spread has widened even more so it will just continue to make real estate look very attractive on a spread basis.”
 
Source: Reminetwork.com

Mortgage Rates for January 21, 2015 — By Peter Paley

                                           

Peter Paley - Your Home and Mortgage Peter Paley

Big news! Bank of Canada lowers overnight rate

In a surprise move, the Bank of Canada announced today that it is lowering its key rate down to 0.75 per cent in order to “provide insurance” against the  risks to the economy posed by the sharp drop in oil prices. This is the first time the overnight rate has changed since September 2010.

If you’ve got a variable-rate mortgage, need a new mortgage, are renewing, or want to consolidate debt at the lowest cost funds, this is very big news indeed!

Get in touch today for help determining whether a fixed or variable-rate mortgage will work best for your situation.

The next rate-setting day is March 4th

Come visit Realtor Rosalie Drysdale Website each week for my weekly Mortgage Rates.

Whether you are looking to purchase, refinance, or renew, we can help you decide whether a fixed or variable-rate mortgage will work best for your situation. Call today!

At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.

We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.

Terms

Posted Rates

Our Rates

6 MONTHS

3.14%

3.10%

1 YEAR

2.99%

2.69%

2 YEARS

2.94%

2.59%

3 YEARS

3.44%

2.69%

4 YEARS

3.94%

2.87%

5 YEARS

4.79%

2.94%

7 YEARS

6.04%

3.79%

10 YEARS

6.50%

4.39%

Rates are subject to change without notice. OAC E&OE

Prime Rate

3.00%

5 yr variable

2.40%

Looking at Purchasing that New Home, Needing a Mortgage,

Contact Peter Paley at Invis Mortgage

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

Mortgage Rates for December 4, 2014 — By Peter Paley

                                           

Peter Paley - Your Home and Mortgage Peter Paley

Bank of Canada Once again, no rate change !

Looking at Purchasing that New Home, Needing a Mortgage,

Contact Peter Paley at Invis Mortgage

If you’ve got a variable-rate mortgage, need a new mortgage, or want to consolidate debt at the lowest cost funds, it’s great news that we are finishing 2014 with the Bank of Canada keeping the overnight rate unchanged. The prime rate stays at 3%.
 
The overnight rate has held steady for more than four years. In its interest-rate announcement, the central bank noted that the rate is “appropriate” given the “balance of risks” in the economy.
 
Whether you are looking to purchase, refinance, or renew, we can help you decide whether a fixed or variable-rate mortgage will work best for your situation. Call today!
 
At Invis, we are always aware of the current environment and resulting implications, so at any time we can recommend a mortgage that gives you an edge and meets your current needs and future goals.
 
We regularly receive short-term rate promotions that are not posted online, which means our rates change frequently. Please contact us for these unpublished rate specials.
 

Terms

Posted Rates

Our Rates

6 MONTHS

4.00%

3.95%

1 YEAR

3.09%

2.69%

2 YEARS

3.04%

2.59%

3 YEARS

3.44%

2.69%

4 YEARS

3.94%

2.87%

5 YEARS

4.79%

2.94%

7 YEARS

6.04%

3.79%

10 YEARS

6.50%

4.39%

Rates are subject to change without notice. OAC E&OE

Prime Rate

3.00%

5 yr variable

2.40%

Whatever your need is today – first or next home, renewal, refinance, renovation financing, equity take out, business–for-self mortgage, investing in property or a second/vacation home, contact us for a review of your situation, and the advice you need to achieve your homeownership dreams. After all, the right mortgage can build your wealth and save you thousands of dollars

Every single day we’re making homeowner dreams come true. And we’re here to help you.

 

Peter Paley Mortgage Associate Send an EmailVisit Website

 

Bank of Canada keeps interest rate at 1 per cent, but keeping eye on inflation

By: Maria Babbage, The Canadian Press

Posted: 3:02 AM | Last Modified: 11:13 AM

Bank of Canada Governor Stephen Poloz gestures during a news conference in Ottawa, Wednesday, Jan.22, 2014. THE CANADIAN PRESS/Adrian Wyld

Enlarge Image

Bank of Canada Governor Stephen Poloz gestures during a news conference in Ottawa, Wednesday, Jan.22, 2014. THE CANADIAN PRESS/Adrian Wyld

OTTAWA – The Bank of Canada is lowering its forecast for inflation, which has been persistently below the desired target, but keeping its key interest rate unchanged at 1.0 per cent.

The central bank is maintaining neutral stance on whether its next move will be to raise or lower the rate from where it has been for more than three years, amid a weak economy and low inflation.

While it sees improvements in the Canadian economy, the Bank of Canada said inflation is now expected to be lower than previously projected — in part because of price competition among retailers.

It expects the total inflation rate to remain at 0.9 per cent in the first half of 2014, down from its previous forecast of 1.2 per cent, but should “increase very gradually” and reach the bank’s ideal target of 2.0 per cent in last quarter of 2015.

Canada’s economic growth in the second half of 2013 was better than expected and should pick up from an estimated 1.8 per cent last year to 2.5 per cent in both 2014 and 2015, it said.

Stronger demand in the United States as well as the lower loonie should help boost exports, which will also improve business confidence and investment.

The Canadian dollar pulled back more than half a cent following the bank’s report, dropping 0.58 of a cent to 90.56 cents U.S, closer to lows set in early September 2009.

The currency has lost nearly four cents since Dec. 31, when it closed at 94.02 cents US, due to a combination of factors including a strengthening U.S. dollar, weak prices for commodities and Canada’s low-interest, low-inflation environment.

“Despite depreciating in recent months, the Canadian dollar remains strong and will continue to pose competitiveness challenges for Canada’s non-commodity exports,” the bank said in its report.

That was the key phrase, said BMO chief economist Doug Porter.

“This is a strong statement for the Bank, and as close as they will come to saying the currency is still overvalued and, thus, further depreciation is welcome,” he wrote in a note.

Porter also noted that the emphasis the potential for inflation to be too low was “ramped up at notch” in the bank’s latest statement.

CIBC’s Peter Buchanan said the statement “retains a broadly dovish flavour, although the bias as before remains broadly balanced between a possible rate reduction and potential increase.”

The bank expects global growth — led by stronger momentum in the U.S. — to rise from 2.9 per cent in 2013 to 3.4 per cent in 2014 and 3.7 per cent in 2015.

But the bank noted that inflation in Canada is expected to “remain well below target for some time,” in part due to increased competition in the retail sector — which keeps the price of goods and services low — and excess capacity. So the “downside risks have grown in importance,” it said.

“The most important risks are stronger U.S. investment, underperformance in Canadian exports, and imbalances in the household sector,” it said.

Canada’s total inflation rate was 0.9 per cent in November, the seventh month in the past 13 months where the official headline inflation reading came in below the bank’s desired broad range of between one and three per cent. And it’s been consistently below the ideal target of two per cent.

Statistics Canada will release its December inflation figures on Friday.

“The significant and persistent slack in the Canadian economy has contributed to a marked increase since mid-2012 in the proportion of core consumer goods and services for which prices are increasing by less than two per cent,” it said.

“Heightened competition in the retail sector is also contributing to the weakness in inflation.”

But the bank said the balance of risks remains within the same zone as its last report in October, so it’s decided to maintain its key interest rate target.

Central banks are usually more preoccupied with high inflation, but low inflation is equally concerning because it’s evidence of weakness in real economic activity and could lead to deflation, where prices actually decline absolutely.

As expected, the statement retains a broadly dovish flavour, although the bias as before remains broadly balanced between a possible rate reduction and potential increase.

The bank says it will make its next interest rate announcement on March 5 and release its updated outlook for the economy and inflation — including risks to the projection — on April 16.

Source: Winnipeg Free Press

Bank of Canada interest rate announcement

Bank of Canada interest rate announcement

October 23rd, 2013 by ,    photos by Sean Kilpatrick / THE CANADIAN PRESS

Bank of Canada maintains overnight rate target at 1 percent

 

In his third interest rate announcement as Governor of the Bank of Canada, Stephen Poloz announced this morning that the overnight lending rate would continue at 1.00 percent – a position it’s stayed in since September 2010. Poloz also discussed his second monetary policy report.

Monetary policy objectives

Since 1991, the objective of monetary policy has been simple: to achieve a pre-announced target rate of inflation. To set this target, Council examines economic projections, analyzes monetary and credit aggregates, looks at current interest rates, debt levels and any changes in access to credit, as well as information on the interest rate expectations in other financial markets. After analyzing the data, the Governing Council has to decide how to integrate it into a new monetary policy report.

The key to a successful monetary policy is to look ahead to the likely outcome and react appropriately, so inflation is either kept on target or brought to target over a year or two. Since 1995, the Bank of Canada has kept the target rate of inflation at 2.00 percent. Currently, Canada’s rate of inflation sits at 1.1 percent, as economic growth is modest in Canada and around the world. As a result, the Bank of Canada has downgraded its growth forecasts.

Growth projections

The Bank has shaved growth projection in 2013 by two-tenths of a point, from 1.8 percent to 1.6 percent, by four-tenths down to 2.3 percent in 2014 and by one-tenth down to 2.6 percent in 2015 – numbers it had originally projected just three months ago, in July. Poloz addressed that, ”the Bank expects the economy will return gradually to full production capacity, around the end of 2015.”

“In Canada, uncertain global and domestic economic conditions are delaying the pick-up in exports and business investment, leaving the level of economic activity lower than the Bank had been expecting. With larger and more persistent excess supply in the economy, both total CPI and core inflation are expected to return more gradually to 2 percent, around the end of 2015.”

The next interest rate announcement is scheduled for December 4, 2013.

Source: Bank of Canada Press Release – October 23, 2013

Source: GoldenGirlFinance.com

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