The Bank of Canada announced today that it is holding the overnight rate steady, and indicated that they will be cautious in raising rates going forward.
The Bank noted that consumer spending, business investment, and infrastructure spending are contributing to growth, but that export growth has slipped and the global outlook faces continued uncertainty due to “geopolitical developments and trade policies.” The Bank has therefore deemed that “the current stance of monetary policy remains appropriate.” Good news for homeowners with variable-rate mortgages and lines of credit. The next rate-setting day is January 17, 2018.
IMPORTANT – New Mortgage Rules Effective January 1, 2018. Purchase before year end if you have 20% downpayment, otherwise you may have to buy 20% less home! If you need to pay off large amounts of credit card debt, are thinking of a large renovation, or want to buy an investment property, you should also act before year end. These new mortgage rules will reduce your purchasing power and affect your ability to access your home equity. Get in touch ASAP to understand the changes and review your options!
If you have questions about your home financing options, call me anytime. 514-731-2333
The commentary in this publication is for general information only and should not be considered legal, tax, or other professional advice to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation.