Market predictions came true today as the Bank of Canada maintained it’s key interest rate (also known as the ‘overnight rate’) at 4.50%. But there’s much more to know and understand than the usual press release which arrived this morning at 10:00 (ET). So let’s dive in.
The Bank of Canada (BoC) Governor, Tiff Macklem, in his opening remarks today stated “We are encouraged that inflation is declining, and we are seized with the importance of staying the course and restoring price stability for Canadians.” However, it’s too soon to start celebrating just yet. While inflation came in at 5.2% in February (down from 5.9% in January), the target for the BoC remains at 2% with forecasts to be “around 3% this summer.” Thus we should all be prepared as the BoC is “prepared to raise the policy rate further to get there.”
Benchmark’s view on today’s press release and last months has not changed! Prepare for the road ahead. Since buying or owning a home is not only the largest purchase most people make in their lifetime, it’s also the largest financial obligation. Changes in interest rates can make a big difference in how much you’ll pay over the life of the mortgage. If you’re wondering how (or if) you can hang on until rates come down, let’s have a conversation. Together, we can formulate a plan that will keep you on track financially.
- If you’re mortgage is up for renewal in 2023? If so, let’s talk now. Over 1 million mortgages in Canada are up for renewal in 2023, according to CMHC. Timing is everything as there are many factors go into the interest rate you pay.
- Purchase in 2023? If so, let’s talk now. Let’s discuss the short and long-term strategies for both fixed and variable rates. Not all mortgages are created equal even if the rates from two different lenders are the same.
- Experiencing budget crunch? If so, let’s talk now.Let’s see if there are ways we can lower your overall monthly expenses by exploring refinancing options to allow for more breathing room in your monthly budget.
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