The Bank of Canada held its overnight interest rate at 1.0% on Wednesday and dramatically revised its projections, because of excess capacity, soft inflation, and stabilizing household debt, to say any hike would be further away than previously thought. In fact, a rate hike is not anticipated until well into 2014!
The overnight rate is important to Canadian mortgage owners because it influences the interest rates at which banks can borrow, which then trickles down to the consumer level. The anticipation of this low interest rate remaining steady through 2014 is great news for buyers! While interest rates remain low those looking to purchase their first home, sell and buy bigger, or purchase an investment property, are in a great position to borrow.