Bank of Canada and Rate Changes – A mortgage broker explains
This valuable explanation came across my desk and I would like to share.
I am a real estate specialist but I am not a finance expert so I will defer to a mortgage specialist to share some valuable reminders that I think most of my readers are aware of but still you may wish to forward this to a friend or family member who needs a refresher.
Please read and share.
This note is from Trish Piggott a local mortgage broker. Please note I gain no financial compensation from sharing this or from mortgage client referrals. I am sharing this because a big part of my approach to helping clients is education.
Trish wrote the following about the Bank of Canada and rate changes:
“This is very confusing for the general public and a lot of Realtors as well. Here is a quick reminder:
* Bank of Canada announcements happen 8 times per year
* Any change they make are to the Overnight Target Rate which directly affects Canadian banks Prime rate
* Fixed Rates are driven by the bond market which trades daily
* When bonds go down, so do Fixed Rates vice versa
* The bond market and the Bank of Canada do not necessarily move in tandem
So when buyers are on the fence and waiting to see what happens at the next Bank of Canada announcement, remind them it will most likely not affect them if they are not taking a Variable Rate mortgage which most are not as of today. “ end of quote.
My clients tell me that an important part of buying and selling real estate is understanding the process and the documentation so they know what they are doing. I do my very best to help education my clients as much as possible so much so that I have created eGuides for people who choose to work with me to help make the process of buying and selling easier. These are not 10 steps guides full of simple ideas, and marketing about me, they are important information you need to know.
If you would like to learn more about how I serve my clients in buying and selling real estate in please contact me here to book a time for an introductory free consultation.
Sincerely,
David Hennessey
REALTOR®
eXp Realty
604 626 8903
