You may have already heard that Bank of Canada announced
an increase to prime rate today. Up
0.25% from 2.75% to 3.00%.
Here is a list of the dates scheduled for future rate
announcements, from the Bank of Canada:
19 Oct 2010
7 Dec 2010
18 Jan 2011
1 Mar 2011
12 Apr 2011
31 May 2011
19 July 2011
7 Sept 2011
25 Oct 2011
6 Dec 2011
There are differing opinions on whether the Bank of
Canada will continue to increase rates, or leave them as is, based on the current
economic outlook. As our economy is still running at a slower
pace, governments will likely hesitate to move too quickly on raising rates as
this could hamper recovery.
According to a recent survey, of fourteen economists, there
is agreement that the Bank of Canada will likely back away from additional
short-term rate increases until April of 2011.
If things go the other way, and Bank of Canada does
increase rates by 0.25% at each rate announcement, we could see prime rate rise
to 5.50% by December 2011.
This article
written by Elizabeth Blair on September 8, 2010. Elizabeth is a Licensed
Mortgage Agent with Mortgage Edge in Richmond Hill, Ontario. Elizabeth
services mortgage clients in Mississauga and all over the Greater Toronto area.
You can
contact Elizabeth directly by phone at (905)
510-5785
by email at
eblair@mortgageedge.ca
or you visit
any of her websites at:
www.missmortgage.ca
www.burlington-mortgage.ca
www.oakville-mortgage.com
www.streetsville-mortgage.ca
Elizabeth is
licensed with the Financial Services Commission of Ontario and is also a Member
of IMBA (the Independent Mortgage Brokers Association of Ontario) www.imba.ca
Lic #
M08005880 / Brokerage Lic # 10680
Head office is
located at: 15 Wertheim Court, Suite 210, Richmond Hill, Ontario, Canada.
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