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Preferred Client
UPDATE
Working Hard to Keep You Informed
No. 3 2015
2015 Interest Rate Forecast
The Bank of Canada surprised the lending industry by reducing their
overnight rate January 21, 2015 from 1% or 0.75%. They called the
reduction an “insurance policy” against the potentially destructive effects
of the collapse in oil prices. A week later the major banks followed suit by
dropping their prime lending rates from 3% to 2.85%. This drop of only
0.15% instead of matching the Bank of Canada reduction of 0.25% was
a conscious decision by the banks. They called this a balanced approach
that took into account both the bank’s actual costs of funds while also
reducing the costs for clients in floating-rate products.
Heather Manna & Jacki Harris
Managing Partners & Mortgage Brokers
Keep Calm and
Mortgage On
403.401.5040
[email protected]
[email protected]
www.millenniummortgagegroup.com
00001
think ,
act... live!
This drop in the prime lending rate had immediate effects for clients who
had variable mortgages, lines of credit and also floating-rate loans. As a
result we also saw fixed rate products drop slightly for new financing.
What can we expect from interest rates for the rest of 2015?
Some analysts believe the Bank of Canada may further cut the overnight
rate this year, some feel the 0.75% will remain for the rest of this year.
The consensus however is that the Canadian economy will be vulnerable
for the first half of the year and that the Bank of Canada will be closely
monitoring the fluctuations in the economy and will react accordingly.
Bottom line, rates are expected to remain low in 2015. This may be a
good time to refinance to access some equity and also lock in a lower
rate moving forward. Or this be an opportunity to purchase a revenue
property to take advantage of the low cost of borrowing.
Setup a meeting with one of our knowledgeable mortgage specialists at
MMG and we can review your options to take advantage of the current
low interest rates!
Check out our video!
https://www.youtube.com/watch?v=_zQHJ7l--v4&feature=youtu.be
Heather and Jacki
113, 1013 17th Ave. SW
Calgary, AB T2T 0A7
Heather & Jacki’s
Preferred Client Update
Preferred Client Update • Working Hard to Keep You Informed
Did you know...
Wine is sold
in tinted bottles
because it spoils
when exposed
to light.
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