As we’re all aware, the Bank of Canada held it’s target for the Overnight rate once again, in April, at 1%. The Bank also gently warned that higher rates might be coming…
The current 1% rate has been in effect since September of 2010. Looking back in time, the rate over the past 10 years has had it’s ups and downs:
April 2002 – 2.75%
April 2003 – 3.25%
April 2004 – 2.00%
April 2005 – 2.50%
April 2006 – 4.00%
April 2007 – 4.25%
April 2008 – 3.00%
April 2009 – 0.25%
April 2010 – 0.25%
As stated on their website, “changes in the target for the overnight rate influence other interest rates, such as those for consumer loans and mortgages.”
Right now, with the rates still at record lows, it’s a great time to buy a home!
The next announcement from Bank of Canada regarding the overnight rate will take place on June 5, 2012.
Marg Scheben-Edey is a Broker with RE/MAX four seasons realty limited, Brokerage in beautiful Collingwood, ON. With three decades of experience, Marg is a leader in the local real estate marketplace and is ready to help guide both Buyers and Sellers in achieving their real estate goals. Email Marg