Interest Rate Changes

Interest Rate Changes

If you follow the news you would have heard that most majors banks raised their interest rates on March 31, 2010. The half point increase in the rate will increase new mortgage costs slightly but it will have little impact on the market place.

First the increase is small and competitive factors may wipe out that increase over the next month. If banks see a drop in their lending portfolios they are apt to lower the rates to re-capture market share. Remember it was the banks who raises rates not the Central Bank, that rate remains unchanged.

Which is the second point. The Bank of Canada will not be changing the overall rate until likely June and even than the current talk is they will raise the rate only 1/4%.

Rates in Canada will remain very close to historical lows for some time. It continues to be a great time to buy and invest in the Stratford market

Jamie Woodend
Sales Representative
Remax a-b Realty Ltd Brokerage
88 Wellington Street
Stratford, Ontario, N5A 2L2
519-273-2821 ext 229 Office
519-949-0345 Cell