The Bank of Canada is Slashing Interest Rates on July 15, 2015! Rush For Your Dream Home Now!
The trending question that is running in the minds of investors this July is that whether or not the Bank of Canada is going to slash its interest rates in the upcoming meet on Wednesday? Even for the BoC itself, it is challenging to make a right decision as there are many factors which are in the favor and against lowering the Canadian interest rates. According to sources, the bank is considering to cut its current interest rates i.e. 0.75%.
Lender prime rates are affected by the progression of the BoC’s overnight rates. If the Government of Canada decides to increase the GoC’s bond yields, the fixed mortgage rates will also move in the same direction. For this reason, overnight rates are the one which needs to be strictly watched.
A recently published report in CIBC Economics, shows a serious concern of the economists expressing their doubts on the interest rates cut and effectiveness. Investors are expecting a rate cut of 50 percent or more on the 15th July, meeting of BoC. But, will the Bank of Canada going to meet their expectations? One wonders if these rate slashes are actually going to have any impact on the economy.
The Canada’s economy is still struggling with the recent oil patch in Alberta and the CIBC has raised questions over the further lowering of the Canadian interest rates prices. Their doubt is whether the rate drop will actually help the country in a meaningful way or not.
The country’s economy is not performing well and the progression is far below than the 1.9 percent, which is the least expected by the Bank of Canada says a senior economist.
In these challenging economic times, if the BoC opts not to go for a rate cut, then, it will take more than a year for the economy to perform well again. This has lead the rate cut decision in the favor on the coming 15th July.
How is it Going to Influence Your Mortgage Rate?
Though the Canada’s economy is struggling, but the rate cuts can immensely benefit the borrowers. Lower interest rates will help the borrowers and they will experience the lower housing installments for a longer term. This is indeed a golden time to invest in the Canadian housing market as it will ease people’s life and they can apply for the housing loans at much lower rates.
As the cheap debt will be available from the financial institutions after the Boc’s decision, it would be tempting to know that you can afford your housing debts in a more convenient way than before. Don’t assume that the rates are going to stay low forever, so, before it hikes back again, invest now in your dream property in Toronto. Get benefited with the lowest interest rates. Don’t forget to ask for a professional realtor’s help in this matter.
We, at vinodbansal.com, help people find their dream property in Brampton, Toronto, Mississauga and adjoining areas. We watch the market’s condition closely and always come up with lucrative real estate deals. With the rate cut this July 2015, we suggest you to invest in your desired real estate, so that you can turn the situation in your favor and enjoy the lower interest rates at the same time. Call us now, so that we can assist you immediately.
The trending question that is running in the minds of investors this July is that whether or not the Bank of Canada is going to slash its interest rates in the upcoming meet on Wednesday? Even for the BoC itself, it is challenging to make a right decision as there are many factors which are…