Just a 30 second note on the rate outlook after the Bank of Canada announcement on Tuesday Oct. 19, 2010.
- Prime rate is staying put (3%), the next meeting December 7 th (expectation is Prime will remain unchanged into 2011)
- Bank of Canada expects growth to be slow globally (meaning rates will remain low in Canada)
- Inflation is below projections, another indicator of low rates for quite some time.
If you are in a variable mortgage, keep smiling! If you are in a fixed mortgage, it may be well worth it to move into a variable or even another fixed rate mortgage for a shorter term (1 – 3yrs, instead of 5). Speak to a Mortgage Professional for details.