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The Bank of Canada is keeping interest rates the same—for now

The Bank of Canada is keeping interest rates the same—for now

The Bank of Canada’s rate, known as the target or overnight rate, affects the interest rate borrowers and savers are offered from retail banks on savings accounts, mortgages, and other financial services.

The Bank raises its rate when it wants to cool down a hot economy and lowers it when it wants to encourage the public to borrow money in a slow economy. A healthy economy sits at its greatest potential at a 2% inflation rate, the bank’s target.

Bank of Canada Raises Qualifying Mortgage Rates

Bank of Canada Raises Qualifying Mortgage Rates

On May 9th, the Bank of Canada raised its Benchmark Qualifying rate. The Benchmark rate is the median average of the 5-year posted rates from the major six banks. Given recent rate increases over the past few weeks, that median rate increased this week by 20 basis points or 0.2% bringing the Benchmark rate from 5.14% to 5.34%.

What does this mean?

The Calgary Housing Market Expected to Stay Stable for 2018 

The Calgary Housing Market Expected to Stay Stable for 2018 

Canada’s housing market has long been considered quite overheated. This trend is mostly driven by the extreme markets of Vancouver and Toronto housing markets; these are the markets that government regulations that limit loan to value ratios among others were targeted at cooling. Conversely, the Fort McMurray housing market is crashing along with activity in the oil patch. But where does that leave Calgary’s housing market?