George MacDonald Mortgage Planner
1728 46 St NW T3B 1B2 Calgary, AB, Canada

The Bank of Canada, after cutting its key policy interest rate three times in March to bring it down to 0.25 per cent, announced today that it’s leaving the rate as is for now. This is good news for borrowers who have a variable rate mortgage, as there is no change to the prime rate. Perhaps the biggest story coming out of today’s announcement is the Canadian economy appears to have avoided the most severe scenario and the negative impact of the pandemic has likely peaked.

One bright spot amid today's dark clouds is that mortgage rates remain low by historical standards.

Today the Bank of Canada (BOC) kept its benchmark interest rate steady at 0.25 per cent even with the bleakest of bleak economic outlook, stating that it considers the current level of its rate to be at an "effective lower bound." That means the bank does not have any plans to cut the rate to zero or into negative territory, despite the uncertainty of the COVID-19 pandemic. The prime rate for variable rate mortgages of 2.45 per cent will stay the same until at least the next BOC meeting on June 3rd. If you have any questions or concerns regarding your mortgage contact me anytime.