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BoC Rate Announcement October 25, 2017 – Take Advantage of Vancouver's Best Mortgages Rates

on 25 October 2017
Bank of Canada makes rate announcement on Oct 25 2018
Take advantage of the best mortgage rates in Vancouver while you can. We can all breathe a sigh of relief this morning as the Bank of Canada has decided to not increase the overnight rate, instead they’ve kept it unchanged at 1%.

Earlier this year we experienced two rate increases, however the Bank of Canada has appeared to take a more cautious approach this time around. The bank has stated that they’ve held off based on the strength of the CAD dollar, as it’s slowed down the inflation we saw over the last 18 months. We are expected to see interest rates increase by 2% by the end of next year, although these changes will impact Canadians, they are at least going to come at a more gradual pace. If you’ve considered purchasing or refinancing, we suggest applying for a mortgage loan online as soon as possible, in order to secure the best mortgage rates in Vancouver before we see yet another rate increase.

The next scheduled rate announcement is set to take place December 6, 2017.

What this means for Canadians looking to purchase or refinance:

Given the recent changes to the mortgage approval guidelines, holding off on a rate increase will help Canadians looking to purchase or refinance, qualify on a lower rate before the new mortgage rule is in effect (January 1, 2018).

We do however urge anyone looking to purchase in the very near future or wanting to refinance, to contact our office as soon as possible to secure a signed mortgage approval, at their lowest available rate before January 1, 2018.

Bank of Canada makes interest rate annoucment

Read this for more details on the new mortgage rule, effective January 1, 2018.

More about the Bank of Canada rate announcement…

"The current stance of monetary policy is appropriate" "While less monetary policy stimulus will likely be required over time, we will be cautious in making future adjustments to the policy rate.” says the bank.

The Bank of Canada has assured it will pay close attention to data when it comes to making further decisions regarding higher interest rates, wage growth, inflation and economic capacity.

The first three months of this year the economy increased at an annual rate of 3.7% and 4.5% in the second quarter. We’re expecting to see real GDP growth at an annual rate of 1.8% in the third quarter and 2.5% for the remaining three months. There is speculation that growth will likely continue, although slow compared to its annual pace of 3.1% this year, 2.1% in 2018 and 1.5% in 2019. Last week OSFI (Office of Superintendent of the Financial Institutions) announced yet another mortgage rule which is forecasted to trim 0.2% from the GDP by the end of 2019, according to the bank.

According to the Monetary Report, residential consumption and investments as we know, had great effects on Canada’s recent growth. However the consequences of higher interest rates, household debt and tightened lending guidelines will likely cool the inflated real estate market.

Read this for the October 2017 Monetary Policy Report