Bank of Canada Holds Steady on March 8, 2023

BREAKING NEWS: Bank of Canada has left its key interest rate unchanged

For the first time in a year, the Bank of Canada has lefts its overnight target rate unchanged, keeping it at 4.50%. In a statement released this morning, the Bank noted, “Global economic developments have evolved broadly in line with the outlook in the January Monetary Policy Report (MPR). Global growth continues to slow, and inflation, while still too high, is coming down due primarily to lower energy prices.”

This is the first time the Bank has held during its rate-hike cycle, which began in March 2022.

Will the Prime Rate be affected?

Prime Rate will remain unchanged and hold steady at 6.70%.

The next announcement will take place on April 12, 2023 and Today's press release says, "Governing Council will continue to assess economic developments and the impact of past interest rate increases and is prepared to increase the policy rate further if needed to return inflation to the 2% target. The Bank remains resolute in its commitment to restoring price stability for Canadians."

How does this affect your mortgage as of today? No changes!!!!

• Pre-Approval: With today’s announcement, your client’s pre-approval numbers will remain the same! If your client’s have any questions about their pre-approval I’m always happy to assist before they move forward with an offer to purchase.
• Fixed Rate Mortgages: Everything remains the same, with no change in payment.
• Adjustable Rate & Static Variable Rate Mortgages: Everything remains the same, with no change in payment (for the first time in a year)!

Is Now Still a Good Time to Buy?

Yes, rates are higher - but house prices have been decreasing month after month. In some extreme circumstances, we’ve seen homes decrease as much as 17% or more (ex: $750,000 to $625,000).

Now may be the perfect time to take advantage of lower real estate prices, since interest rates are not likely to stay high forever. Once the economy stabilizes, you can expect rates to stay steady or potentially dop back down again. Plus you are facing less competition and bidding wars!

At the end of the day, the perfect time to buy a house is when it’s right for you!

As always, I’m here to answer any of your questions and help in any way I can! Don’t hesitate to reach out!