Matching expectation the Bank of Canada this week announced that it was keeping interest rates steady which keeps prime at 3.95% for the foreseeable future. Global trade uncertainly along with adjusted growth numbers for the last two years have put interest rate increases on hold.
More and more Canadians have been choosing variable rate mortgages in the last few months. It is more cost effective, and given current interest rate projections, is the better choice. With a rather large spread between fixed and variable rates and less and less pressure for rates to increase further we believe most borrowers are better served with a variable interest rate mortgage.