Mortgage Blog

Bank of Canada Rate Update (July 2021)

July 19, 2021 | Posted by: Kelleway Mortgage Architects

30 Second overview

No change to the overnight rate. Held at 0.25%
Bank of Canada Prime is 2.45% (your lender prime may differ)
Reducing the weekly purchases of government bonds to 2 billion, a decrease of 1/3rd

Concerns

Covid Variants in Canada and abroad
Inflation above target at ~7%

Good news

Inflation is expected to moderate in 2022 to the target of 6%
Oil prices are expected to rise
Unemployment will rebound in hardest-hit segments
Key overnight rate 0.25% expected to remain till mid 2022
Mortgage Holders Variable is a still a option

Next announcement on interest rates from the Bank of Canada will take place on September 08 2021.

With pre-approval, you can still get a lower rate if rates go down. BUT if rates go up, the rate you were pre-approved for has you protected.

Questions?

 

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