We all know that old expression “What goes up must come down”! In this day and age does this apply to our current variable rate mortgages. Before the Bank of Canada stepped in early last year our prime rate sat at 2.45%, we are currently at 6.7% after having gone up 8 times in the past year.
Inflation is now at the lowest level in a year, coming in at 5.9% vs the high of 8.1% back in June of last year. While still not the 3% target, it is still much better than where we were. In fact the price of gas has come down quite a bit since this time last year. In-fact most things are coming back to earth with the exception for the price of food.
The stubborn continued rise in the price of food I am blaming on the “Greedflation” of our grocery chains who are making record profits on the back of hurting consumers. While I am never against making a profit, they have crossed the line and continue to line their pockets in the process. After watching Clarkson’s farm on Prime recently this may be the ideal time to reach out and start getting subscriptions from our local farms and cut out the greedy grocery chains.
A quick google search will help you find many farmers or farm markets who are much more deserving of profits than any large corporation. I digress as this is still about inflation and many economists are predicting that we should be back at our 3% target by mid next year. So if this is the case then prime rate may start to come back down if the economy slows down too quickly or stalls. If you are still hanging on to your variable rate mortgage, use your best discretion about where you want to go, don’t let someone sell you on a fix rate that would come with a higher penalty to break it if that is not what you want.
Today I am thankful for a snow day to spend with my kids, neighbourhood kids who will shovel my driveway for $2, my dog who alerts us when Amazon arrives.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here