On the morning of September 9th, the Bank of Canada confirmed what many pundits had expected – interest rates were to remain as they were.
As in previous news releases, the Bank of Canada identifies inflation as within the Bank of Canada’s target levels. Core inflation was reported to be around the 2 per cent mark, within the Bank of Canada’s expectations as outlined in their Monetary Policy Report last released in July.
Low oil and commodity prices and the resulting affect on Canada’s resource sector have had significant impact on the Canadian economy. However; a continued recovery in the United States has had some positive influence on Canadian exports and domestic household spending continues to be strong.
With these factors and more playing into the decision of the Bank of Canada to hold the overnight lending rate steady, what does this mean for the average Canadian with a mortgage?
Canadians holding a variable rate mortgage (VRM) can continue to take advantage of the historically low interest rates they continue to receive.
Just how they decide to do so is up to them.
While conventional wisdom might suggest to Canadians that low interest rates simply mean a low monthly payment, but another strategy is to use these low rates to get to zero on your mortgage faster. How?