There is a news report today following a report from Statistics Canada stating that the Canadian economy added 93,000 jobs in the month of June pushing unemployment rates to their lowest levels in 1 1/2 years. Unfortunately for most people in Vancouver and BC, the job gains were mostly in Ontario and Quebec, where most of the job losses happened in the recession of late 2008.
Based on the joblessness report, the value of the Canadian dollar increased substantially also to almost $0.97 US.
What Does This Mean for My Mortgage?
The strength in the Canadian economy sets up for the next rate update on July 20th where the Bank of Canada is expected to increase their prime lending rate to prevent the Canadian economy from getting too hot and causing high inflation. This will effect the interest rates on Variable Rate Mortgages (VRM), Adjustable Rate Mortgages (ARM), and Home Equity Line of Credit (HELOC) mortgages, which are tied to the Bank of Canada Prime Rate.
This is unfortunate for homeowners who will have to pay more for their mortgages, but it is a great time to buy a home or to move up to a larger home.
Additionally, while the Bank of Canada Prime Rate is going to increase, many of my “A” mortgage lenders are decreasing their variable rates, with a few going as low as prime -0.7%. This is a great time to move on the market with a bit of a slowdown in purchases while the market continues to adjust to the recent mortgage lending rule changes.
Are you looking to get into the housing market, moving up to a newer home, or to decrease your borrowing costs? Fill out the form below and I will be in touch with you shortly to help you save money.