Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino: Bank of Canada

Showing posts with label Bank of Canada. Show all posts

Sunday, April 17, 2016

Bank of Canada Leaves interest rate at 0.5%

The Bank of Canada announced on April 13 2016 that they would be leaving the overnight lending rate at 0.5%

This means that consumer lending rates should remain the same.

The bank prime rate that banks charge to the consumer remains at 2.70%

Read more about definition of rates

Below is, in part, what the Bank of Canada Announced on Wednesday April 13 2016:

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Growth in the global economy is expected to strengthen gradually from about 3 per cent in 2016 to 3 1/2 per cent in 2017-18, a weaker outlook than the Bank had projected in its January Monetary Policy Report (MPR). After a slow start to 2016, the US economy is expected to regain momentum, but with a lower profile and a composition that is less favourable for Canadian exports. Financial conditions have improved, partly in response to expectations of more accommodative monetary policy in some major economies.

Prices of oil and other commodities are off their earlier lows and slightly above levels assumed by the Bank in January, but remain well below historical averages. Nonetheless, the Bank expects deeper cuts to investment in Canada’s energy sector than were forecast in January. Meanwhile, the Canadian dollar has firmed, reflecting shifting expectations for monetary policy in Canada and the United States, as well as recent increases in commodity prices.

The Canadian economy’s complex structural adjustment to the oil price shock is ongoing and will dampen growth throughout the Bank’s projection horizon. First-quarter GDP growth appears to have been unexpectedly strong, but some of that strength is due to temporary factors and is likely to reverse in the second quarter. Still, it does appear that the positive forces at work in the economy are starting to outweigh those that are negative. Non-resource exports are expected to strengthen, but their profile is weaker than previously projected, in part because of slower foreign demand growth and the higher Canadian dollar. The economy continues to create net new employment, especially in services, despite job losses in resource-intensive regions. In this context, household spending continues to expand moderately. While business investment is still shrinking due to sizeable declines in the energy sector, it is expected to turn positive later this year. The complex adjustment figures importantly in the Bank’s annual review of the economy’s potential, which has resulted in a lower estimated range for potential output growth.

Read full report by the bank here

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com

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Wednesday, April 06, 2016

Bank of Canada Maintains overnight interest rate at 0.5% as of March 9th 2016

Good morning from Fabulous Mississauga!

As most economists expected, the Bank of Canada refrained from cutting interest rates at this week's policy announcement meeting.

On March 9, 2016 the Bank of Canada announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent

The key policy overnight rate is only 50 basis points (one-half of one percentage points or 0.5%) and another 25 basis point (bp) cut would only reduce the Bank's ability to take action, if needed, in the future.

The recent economic news has shown a marked improvement, precluding the Bank from following on the previous two rate cuts this year.

Sunday, January 24, 2016

Bank of Canada leaves key interest rate unchanged at 1/2%

Greetings from Fabulous Mississauga!

The Bank of Canada leaves key interest rate unchanged at 1/2% most anticipated interest rate announcement was on January 20, 2016 and the decision was that the Bank of Canada will be maintaining its overnight rate at 0.5%. This means there will be no changes to prime rate.

What does this mean to you, the consumer? It's likely the major banks in Canada will leave their prime rates that they charge you at 2.70%

The last increase of the prime rate was September 2010 and this the longest stretch of no increase in history.

Economists have been predicting that the prime rate will remain unchanged until sometime in 2016 and some even longer than that. There are others who are predicting no change for 5 years or longer.

Many have been predicting the prime rate will increase 'next year' every year for the past 5 years now.

Personally, I believe that the low interest rates that we are currently experiencing are generational. What I mean is that I predict we will see rates at or near their current levels up to about 5% for the next 15 years. It's already been 5 years of low interest rates and it will likely remain this way for the next 15, a total of 20 years, a full generation! That's my prediction.

You can still find discounts on variable rate mortgages as low as prime -0.5% with most banks offering about prime -0.10%.

You can find 5 year fixed mortgages as low as 2.6% and even slightly lower sometimes.

Read the entire release from the Bank of Canada Here

I hope this finds you Happy and Healthy!

All the Best!

Mark

Mississauga4Sale.com

Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Monday, December 14, 2015

Government of Canada Announcement changes to downpayment rules effective February 15, 2016

Greetings from Fabulous Mississauga!

The Government of Canada Announced a change to the downpayment rules effective February 15, 2016

The minimum down payment will remain 5% for any real estate purchase up to $500,000. Once you are over $500,000, the downpayment must be 10%, but only on the amount exceeding $500,000.

For example: If you are purchasing a home for $800,000, you'll need 5% for the first $500,000 and 10% on the remaining $300,000 making the minimum down payment on this purchase $55,000.

You will still be able to purchase a home up to $1,000,000 with 5% down until February 15th. Purchases over $1,000,000 still require 20% down.

Wednesday, October 21, 2015

Bank of Canada leaves prime rate at 0.5% on October 21 2015

Hello from fabulous Mississauga!

How about those Jays and their win today? It was so exciting to see them win the 5th game today against the Royals, let's hope they can continue!

Other positive today for the Toronto and Canadian people who have debt is that the Bank of Canada left the prime rate at 0.5%

This means that the Bank Prime Rate stays at .75% and the borrowing rate that you and most Canadians receive stays the same before the announcement at 2.70%

If you want to read the entire press release from the Bank, please use the link below:

http://www.bankofcanada.ca/2015/10/fad-press-release-2015-10-21

Have a Great Day and GO JAYS GO

I hope this finds you Happy and Healthy!

All the Best!

Mark

Mississauga4Sale.com

Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
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Wednesday, September 09, 2015

Bank of Canada keeping the target overnight interest rate at .5%

The Bank of Canada announced on September 9th that they are keeping the target overnight interest rate at .5% and this means that the bank rate stays at .75%

see a graph of historical interest rates here:

http://www.mississauga4sale.com/rates.htm

This is the full press release below:

The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1/2 per cent. The Bank Rate is correspondingly 3/4 per cent and the deposit rate is 1/4 per cent.

Inflation has evolved in line with the outlook in the Bank’s July Monetary Policy Report (MPR). Total CPI inflation remains near the bottom of the target range, reflecting year-over-year price declines for consumer energy products. Core inflation has been close to 2 per cent, with disinflationary pressures from economic slack being offset by transitory effects of the past depreciation of the Canadian dollar and some sector-specific factors. The dynamics of GDP growth in Canada outlined in July’s MPR also remain intact. The stimulative effects of previous monetary policy actions are working their way through the Canadian economy.

Canada’s resource sector continues to adjust to lower prices for oil and other commodities, with some spillover to the rest of the economy. These adjustments are complex and are expected to take considerable time. Economic activity continues to be underpinned by solid household spending and a firm recovery in the United States, with particular strength in the sectors of the U.S. economy that are important for Canadian exports.

Increasing uncertainty about growth prospects for China and other emerging-market economies, in contrast, is raising questions about the pace of the global recovery. This has contributed to heightened financial market volatility and lower commodity prices. Movements in the Canadian dollar are helping to absorb some of the impact of lower commodity prices and are facilitating the adjustments taking place in Canada’s economy. While the overall export picture is still uncertain, the latest data confirm that exchange rate-sensitive exports are regaining momentum.

Meanwhile, risks to financial stability are evolving as expected. Taking all of these developments into consideration, the Bank judges that the risks to the outlook for inflation remain within the zone for which the current stance of monetary policy is appropriate. Therefore, the target for the overnight rate remains at 1/2 per cent.

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1
BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Wednesday, July 15, 2015

Bank of Canada Announces another rate cut to 0.5% as of July 15

As of July 15, 2015 the Prime Rate was cut to 0.5%

The Bank of Canada announced a drop in the prime rate to 0.5% on July 15 at the latest press conference,

The Bank of Canada is cutting its key interest rate for the second time this year, citing a larger-than-expected first half contraction and a “puzzling” stall in non-energy exports.

The central bank lowered its benchmark overnight rate by a quarter percentage-point Wednesday to 0.5 per cent, blaming faltering global growth, disinflation and low prices for oil and other commodities.

I hope this finds you Happy and Healthy!

All the Best!

Mark

Mississauga4Sale.com

Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
http://www.mississauga4sale.com/internet-evaluation.htm
Power of Sales and Foreclosureshttp://www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
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See seasonal housing patternshttp://www.mississauga4sale.com/TREBprice.htm

Wednesday, May 27, 2015

Bank of Canada Interest Rate Announcement May 27 2015 no change to Prime Rate

Good morning from Beautiful Mississauga!

The Bank of Canada announced today that it is maintaining its target for the overnight rate at 0.75 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent

This announcement of no change in the rate was expected by many economists.

Mortgage rates should remain where they are now, pending Bond Yield updates in the next weeks.

Read the entire report at this page:

http://www.bankofcanada.ca/2015/05/fad-press-release-2015-05-27/

Read more about today's mortgage interest rates

I hope this finds you Happy and Healthy!

All the Best!

Mark

Mississauga4Sale.com

Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm
Power of Sales and Foreclosureswww.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
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See seasonal housing patternswww.mississauga4sale.com/TREBprice.htm

Thursday, April 16, 2015

Bank of Canada announcement to keep the prime rate fixed at 0.75%

Good morning from Beautiful Mississauga!

The Bank of Canada announced April 15, 2015 that they will be keeping the prime rate fixed at 0.75%

The Bank Rate (which is the rate that banks charge each other) is correspondingly 1 per cent and the deposit rate (the rate that the Bank of Canada pays/credits any deposits that it is holding for banks) is 1/2 per cent. The Prime Rate to consumers is set by the major banks and it currently sits at 2.85%

Read about all definitions of Prime Rate and Bank Rates etc.

See interest rate trends at this page

Read the full press release from the Bank of Canada rate announcement at this link:

http://www.bankofcanada.ca/2015/04/fad-press-release-2015-04-15/

I hope this finds you Happy and Healthy!

All the Best!

Mark

Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm
Power of Sales and Foreclosureswww.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm
See seasonal housing patternswww.mississauga4sale.com/TREBprice.htm
Would you like me to send you a desk or wall Calendar?
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Wednesday, March 18, 2015

Bank of Montreal BMO announced a reduction to their interest rates yesterday and cut the 5 year rate to 2.79% from 2.99%

Good morning from Beautiful Mississauga!

The Bank of Montreal announced a reduction to their interest rates yesterday, they cut the 5 year rate to 2.79% from 2.99% TD Bank followed this rate cut

The Bank of Montreal announced a ‘special’ rate for its five-year fixed-rate loan and was quickly followed by Toronto-Dominion.

This is typical of the banks to do this just before the prime lending season!

The BMO deal cuts its standard rate of 2.99 per cent to 2.79 per cent. TD Bank followed by cutting its 3.09 per cent rate to match BMO.

Although mortgage brokers can frequently do better than the advertised rate from the banks, the BMO move is seen as a headline-grabber to steal a lead on competitors, including the smaller lenders and non-bank sector

See more about current mortgage rates here:

http://www.mississauga4sale.com/rates.htm

I hope this finds you Happy and Healthy!

All the Best!

Mark

Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm
Power of Sales and Foreclosureswww.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm
If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm
See seasonal housing patternswww.mississauga4sale.com/TREBprice.htm
Would you like me to send you a desk or wall Calendar?
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Thursday, January 29, 2015

Should I lock in my mortgage rate due to recent Bank of Canada Rate Cut?

Should I lock in my mortgage rate?

This is a question many ask.

I just posted the article below about the current status of Short term or long term Mortgage Rates

Enjoy!

Mark

This page is a running record of how interest rates have changed over the past 5 to 10 years and what my personal philosophy is regarding what you should do with your mortgage - namely, should you lock in your mortgage interest rate or should you stay with a variable rate mortgage. This is the question!

After nearly 4.5 years, the Bank of Canada made an announcement last week that shocked the experts, they lowered the Prime Rate by 0.25% Nobody was expecting this reduction! The reasons behind the drop are varied, but the largest reason is that the price of oil is under $50 per barrel and the Bank of Canada performs most of it's forecasting based upon the assumed price at $60 per barrel. Thus, with low inflation, low oil prices generating lower overall revenue for Canada (and certainly Western Canada) the bank decided to lower the rate.

Read about the current Bank of Canada Prime Rate Update

The major Canadian banks did not immediately lower their prime rates that they charge their best customers. As a matter of fact, the Banks only lowered their prime rate by .15% and not the .25% that the Bank of Canada dropped the rate. Bank prime is now 2.85% and mortgage rates for fixed term are nearly the same.

Many believe that there will be mortgage rate wars over the next few months. The banks still have plenty of cash to lend so this is likely the case.

We are still at or near 50 year historic lows- meaning, it's still a good time to 'lock in' your rate if you are not a gambler.

Again, please don't forget these are posted rates and often you can get a lower rate than posted if you negotiate.

Variable rates - the banks are posting their rates as prime plus 0.000% and you can likely find prime minus .2% to prime minus .5% or possibly more

I've written many articles about staying with short term or variable mortgage rates at this page: http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

My preference for many years (and continues to be) to go variable, but if you are not a gambler, then it could be getting close to the time where you lock in your mortgage.

I recall reading an article the day of the rate cut on January 21, 2015 that not one of the 19 'experts' on the Bloomberg Panel had predicted a rate cut.

Now if you read about predictions for the March 4, 2015 Bank of Canada Interest Rate Announcements the 'experts' are saying that they expect the bank rate to drop another .25%

Read the article below that just appeared in the Herald about rates, it's very interesting what the experts are now saying about rates.

If you want interest rate security, then you go long term.

If you want to save money, my advice is to go variable, always (at least for the next 1 to 1.5 years).

....and this is still why

http://www.mississauga4sale.com/rates.htm#1and5

The mortgage interest rate debate continues.....

All the best!

Mark

Read more about this subject at this page: http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm

Read this particular post online at this page: http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm#2015mortgageoutlook

Wednesday, January 21, 2015

Bank of Canada Interest Rate Cut Shock with Article with videos and more information

Hello from Beautiful Mississauga!

The link below is to a very good article about today's Bank of Canada Interest rate cuts, how the markets reacted so far, with some great graphs in it, make sure your volume is turned low as there is an auto-load video

the graph near the bottom is also very interesting where they say the Bank of Canada "was the first to blink" - if you watch the other videos or listen to the Bank of Canada Governor's comments he uses many euphemisms that allow him to stay 'non-committal' on many key issues - this is the Bank's way of not signaling their future intentions to the marketplace - so interesting!

http://business.financialpost.com/2015/01/21/bank-of-canada-cuts-interest-rate-as-oil-plunge-takes-toll-on-economy/

Bank of Canada Rate announcement to drop Prime Rate by .25%

Hello!

Just when you thought that you could predict the future, the Bank of Canada announces a prime interest rate cut!

After nearly 4.5 years, the bank rate has finally changed. I'm sure very few predicted the rate would drop.

The prime rate is now 3/4% and the prime rate banks charge to customers is now 2.75% The previous rate was 3% This is unexpected news and good for anyone looking to borrow soon or having a mortgage coming up for renewal any time soon!

This is in direct contrast to all the recent announcements and many economists saying that the economy is bullish and they anticipate a rise in the rate in late 2015 or 2016, so much for the experts!

This is an excerpt below,

Enjoy!

Mark

The Bank of Canada today announced that it is lowering its target for the overnight rate by one-quarter of one percentage point to 3/4 per cent. The Bank Rate is correspondingly 1 per cent and the deposit rate is 1/2 per cent. This decision is in response to the recent sharp drop in oil prices, which will be negative for growth and underlying inflation in Canada.

Inflation has remained close to the 2 per cent target in recent quarters. Core inflation has been temporarily boosted by sector-specific factors and the pass-through effects of the lower Canadian dollar, which are offsetting disinflationary pressures from slack in the economy and competition in the retail sector. Total CPI inflation is starting to reflect the fall in oil prices.

Oil’s sharp decline in the past six months is expected to boost global economic growth, especially in the United States, while widening the divergences among economies. Persistent headwinds from deleveraging and lingering uncertainty will influence the extent to which some oil-importing countries benefit from lower prices. The Bank’s base-case projection assumes oil prices around US$60 per barrel. Prices are currently lower but our belief is that prices over the medium term are likely to be higher.

Read the entire report here:

http://www.bankofcanada.ca/2015/01/fad-press-release-2015-01-21/

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

Thinking of selling your home in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
www.mississauga4sale.com/internet-evaluation.htm

Power of Sales and Foreclosures
www.mississauga4sale.com/Power-Sales-Bank-Sales-Alert-Request.htm

If you have not already signed up to receive my monthly real estate newsletter, you may do so here: On-Line Real Estate Newsletter sign up
www.mississauga4sale.com/popupquestion.htm

See seasonal housing patterns
www.mississauga4sale.com/TREBprice.htm

Would you like me to send you a desk or wall Calendar?
www.mississauga4sale.com/Calendar-Order-Form.htm

Mississauga Real Estate, Homes, TREB & MLS Blog by Mark Argentino

Sunday, April 17, 2016

Bank of Canada Leaves interest rate at 0.5%

Wednesday, April 06, 2016

Bank of Canada Maintains overnight interest rate at 0.5% as of March 9th 2016

Sunday, January 24, 2016

Bank of Canada leaves key interest rate unchanged at 1/2%

Monday, December 14, 2015

Government of Canada Announcement changes to downpayment rules effective February 15, 2016

Wednesday, October 21, 2015

Bank of Canada leaves prime rate at 0.5% on October 21 2015

Wednesday, September 09, 2015

Bank of Canada keeping the target overnight interest rate at .5%

Wednesday, July 15, 2015

Bank of Canada Announces another rate cut to 0.5% as of July 15

Wednesday, May 27, 2015

Bank of Canada Interest Rate Announcement May 27 2015 no change to Prime Rate

Thursday, April 16, 2015

Bank of Canada announcement to keep the prime rate fixed at 0.75%

Wednesday, March 18, 2015

Bank of Montreal BMO announced a reduction to their interest rates yesterday and cut the 5 year rate to 2.79% from 2.99%

Thursday, January 29, 2015

Should I lock in my mortgage rate due to recent Bank of Canada Rate Cut?

Wednesday, January 21, 2015

Bank of Canada Interest Rate Cut Shock with Article with videos and more information

Bank of Canada Rate announcement to drop Prime Rate by .25%

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