Mortgage, Money and Dream – Our thoughts on Canadian Mortgage Market
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Bank of Canada Target overnight rate - December 2013in Bank Of Canada Benchmark Five Years Bond Yield Vs Qualifying Rate December 2013Soon, Bank of Canada will announce its target overnight rate for next month and a half. All the speculations are pointing towards no change.

Recent weakness in Canadian currency is not a reason for the bank to be alarmed and it is a good thing for Canadian manufacturing.

Apart from maintaining the target for the overnight lending rate, the bank also sets the qualifying rate. The rate has been very stable for last one year. Just like the overnight rate the qualifying rate did not change much.

Although the bond yields moved up and down in last twelve months – the banks did not make much change in the five years posted rates.

One more interesting observation is that the banks have almost stopped advertising low ball rates in the media. In person the rates are still available and they still beat brokers’ rates here and there but no more big advertisements – very rare.

There will be no big surprise in tomorrow’s BoC announcement; mortgage rates will remain stable following that.