There were no surprises today with the Bank of Canada rate decision....holding at 0.25% setting the Bank prime at 2.25%. The only factor to watch out for that may change this outlook is a rapid rise in inflation which right now is not a concern as the CPI actually decreased recently.
“Conditional on the outlook for inflation, the target overnight rate can be expected to remain at its current level until the end of the second quarter of 2010.” (That suggests at least 11 more months of prime rate at 2.25%.)
What does this mean to mortgage holders and those looking to get into the market??
If you have a variable rate mortgage you can feel comfort in knowing you'll have 10 - 11 more months to decide on locking into a 5 year product. If you are looking to enter the market or refinance the cost of borrowing will remain attractive for the next year or so.
Again, everyone's circumstances are different so make sure you consult with a mortgage broker when you're ready to go!!
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