In an effort to stimulate the economy, the Bank of Canada has kept the key interest rate at 1% for the past three years. Because the domestic economy is worsening, it is likely that interest rates will stay low for the foreseeable future.
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Toronto, Canada (PRWEB) May 07, 2013
Canadalend.com, the leading low-cost private mortgage solution provider in Canada, responds to the recent Bank of Canada Monetary Policy Report and the impact it will have on the economy, Canadians, and the ability to borrow money.
On April 17, Mark Carney, head of the Bank of Canada, announced the bank was keeping the key interest rate at 1%. At the same time, the Bank of Canada signalled the potential for increased interest rates and higher borrowing costs, as a strengthening U.S. economy lifts Canada’s outlook. (Source: Bank of Canada, Monetary Policy Report April 17, 2013; http://www.bankofcanada.ca/wp-content/uploads/2013/01/mpr-2013-04-17.pdf.)
“In an effort to stimulate the economy, the Bank of Canada has kept the key interest rate at 1% for the past three years. Because the domestic economy is worsening, it is likely that interest rates will stay low for the foreseeable future,” says Bob Aggarwal, President of Canadalend.com. “On the one hand, this is great for Canadians looking to borrow money. At the same time, the Canadian economy will eventually heat up, taking interest and mortgage rates with it. The big question is…when?”
On April 29, Statistics Canada announced that Canada’s gross domestic product expanded in February for the second straight month. This represents the two strongest back-to-back gains since July and August 2011. It also suggests growth in the first quarter may beat the Bank of Canada’s latest forecast. (Source: Statistics Canada, “Gross domestic product by industry, February 2013,” The Daily April 30, 2013; http://www.statcan.gc.ca/daily-quotidien/130430/dq130430a-eng.htm.)
“While the Canadian economy is weak, it is improving. And it’s still performing better than most other members of the G7,” adds Aggarwal. “Canada has a strong banking system, resources, and low unemployment. At just 1%, the interest rate continues to provide economic stimulus. Right now, it’s extremely cheap to borrow.”
“When the Canadian economy eventually rebounds and interest rates go up, many homeowners will be left wondering if they can afford the monthly payments,” Aggarwal concludes. “If you’re concerned about rising interest rates, want to save money, or free up liquidity, consider refinancing and locking in for a longer term at today’s low rates with the help of skilled independent, licensed mortgage brokers.”
To learn more about Canadalend.com, visit the web site at http://www.Canadalend.com.
Canadalend.com is one of the largest, most trusted private mortgage brokers in Canada, with skilled independent and licensed professionals helping Canadians coast-to-coast. Canadalend.com provides its clients with residential and commercial mortgages, home equity credit, debt consolidation, and assistance with financing concerns.