With the price of oil affecting other items in the consumer price index, can we expect the overnight lending rate to rise on May 31? The overnight lending rate has an impact on the a bank's prime rate, directly effecting variable rate mortgages.
If you have a variable rate mortgage - don't panic! If the bank of Canada raises rates at the end of May, the benefit of locking into a fixed-rate mortgage may not be the best choice. Remember that the economic indicators that affect the prime rate, don't directly affect fixed-rate mortgages. Over the last week, we've actually seen a slight decrease in the bond market, which impacts fixed rate mortgages.
Stay-tuned to find out if you should fix your mortgage or keep it floating with the prime rate.
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