Tag Archive for: Prime lending Rate

More rate hikes???

We find out next week if our stubbornly high inflation which went against consensus and actually increased by .1% last month did finally come back down again. As a result of inflation still being so sticky the Bank of Canada decided in their infinite wisdom to increase the overall lending rate by 25 basis points or .25% at their last meeting.

I don’t know how much more of this people can actually take before they comprehend that they have to cut back on their spending. Just to illustrate the point about this regarding non necessary spending effecting overall inflationary numbers. There was recently a concert by Beyonce in Stockholm Sweden over the 10th and 11th of May. So concert goers paid for tickets, meals out on the town and accommodation for those who traveled to see her show. This resulted in a .3 % increase in their overall inflationary rate because of all the spending that was happening directly linked to this concert.

What this all means is that our individual actions make a difference towards the overall economy. When too many people are opening up their wallets instead of sitting on them, then we will all continue to suffer with higher inflation. Now don’t get me wrong I love music, movies and eating out, however something has to give for us to see inflation coming steadily back down to 2%. Let’s all do our part and end the relentless rate increases.

Today I am thankful for fun trivia games that I get to play with my daughter in traffic, learning to spend a little less so we can bring an end to inflation and Friday night movie night at home with the family.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

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

What does it mean?

Yesterday for the first time a very long time ( 26 years in-fact) the Bank of Canada raised the key overnight lending rate by 100 basis points or 1 full percentage point. As a result the bank prime lending rate is now 4.7%.

Many of us are now waking up this morning asking what does this all mean and how will it impact me. Firstly if you have a variable rate mortgage your payment has now increased. Those with lines of credit their payments have also increased. Basically if you are looking to borrow money it has now become more expensive. The days of cheap/free money are now officially over.

The Bank of Canada has made these moves in an effort to bring inflation which is now at 40 year highs under control. In-fact just prior to the BOC making the policy announcement yesterday the American CPI numbers were released and they hit 9.1%, which is another 40 year high. Inflation has been driven up by the Russian invasion of Ukraine, consistent supply chain issues and continued Chinese lockdowns.

What the BOC is looking for is for consumers to spend less, thus driving down demand. However if the spending stops too quickly it will just drive us into another recession. Only time will tell how this will all work out but with these rapid increases of rates things may come to a halt pretty quickly.

Today I am thankful for appraisals coming in just in time, the arrival of the warmth of summer and Alpe D’Huez stage of the Tour de France today.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here

Have I got your Interest?

Well if I have not then I should, that’s because the Bank of Canada today announced that they will leave the key lending rate basically unchanged at .25%. However that is not the best part, the kicker is that they say that they will not touch the rate until mid next year. That is provided we do not have any unforeseen increases in inflation.  At this point you may be asking yourself, what’s in it for me? Well here it is, lower costs of borrowing, on things like secured and unsecured lines of credit, variable rate mortgages and any other loan that may be linked to the prime lending rate.

So what do you do now? Well given this news there is no better time than the present to take a look at your current financial situation and see if there could be room for improvement. By combining you high interest loans into one low interest loan you will lower your current monthly payments, cut your cost of borrowing and if done correctly can also be a way to achieve debt freedom much more quickly.

If you would like a free no obligation debt analysis, then feel free to contact my office. I will provide you with a simple form to fill out where can get a better idea of where your finances are right now and show you how to create a brighter financial future for yourself. I look forward to hearing from you.

Cheers,

Pat

p.s- You can find me on Twitter,Linkedin, Facebookand friendfeed.