- Bank of Canada Meeting: The Bank of Canada is scheduled for its next interest rate meeting on April 10th. Speculation suggests a potential rate cut during this meeting, but significant relief may not be seen until June or July.
- Inflation Trends: February’s inflation readings in early March brought positive news. Forecasts anticipated an increase in the Consumer Price Index (CPI) from January’s 2.9% to 3.1%. However, the actual figure fell to 2.8%, marking the lowest reading since June 2023. Excluding the shelter component, which heavily comprises mortgage interest carrying costs, the CPI inflation number would have been only 1.3%, well below the Bank of Canada’s 2% target. This downward trend in inflation is encouraging for BOC Governor Tiff Macklem, who seeks further cooling before considering rate adjustments. The next inflation reading is due on April 16th.
- Prime Lending Rate Stability: With no changes in the prime lending rate, variable mortgage rates remain unaffected. Currently, variable rates start in the low 6% range for insured mortgages.
- Fixed Mortgage Rates Stability: The bond market has exhibited stability over recent weeks, with the 5-year bond yield hovering in the mid 3% range. Consequently, 5-year fixed mortgage rates start in the high 4% range for insured mortgages, while 3-year fixed mortgages start in the low 5% range.
- Determining the Best Mortgage Rate: Several factors influence the best mortgage rate available to borrowers. When quoting rates, key questions need to be addressed, including:
- Is the property a rental or primary residence?
- Is the mortgage insured, insurable, or conventional?
- What is the amortization period?
- What term length is preferred?
- Is the property held personally or in a corporation?
- Fixed or variable rate preference?
- What is the credit score?
- What is the loan amount?
- Is it a closed or open loan?
- Mortgage Assistance: Whether obtaining a new mortgage or renewing an existing one, assistance is available. Mortgage brokers can address inquiries and provide guidance at no cost, offering a low-commitment arrangement for borrowers seeking financial advice.
For individuals navigating the mortgage process, whether for new acquisitions or renewals, seeking advice from a mortgage broker can offer valuable insights and assistance tailored to individual circumstances.
