As you have likely heard, the Bank of Canada opted to hold the overnight rate as is, meaning there will be no change in variable rates.  In its press release, the Bank of Canada stated that “The federal government’s new measures to promote stability in Canada’s housing market are likely to restrain residential investment while dampening household vulnerabilities.”  The press release also suggested that these housing measures should mitigate risks over time to Canada’s financial system.

While variable rates will remain the same, the same cannot be guaranteed about fixed rates.   The effects of the recent federal government measures to “stress test” mortgage applicants will become apparent in the next couple of months, and I will keep you updated on changes, as well as my subsequent analyses.

In their press release, the Bank of Canada also noted that household spending is also continuing to rise, as are incomes outside of “energy-intensive regions.”

To recap on my thoughts on the recent federal government’s measures, read an earlier post: http://nazarina.com/blog_post?id=17727

Want to brush up on your mortgage terminology?  Check out my blog of Key Mortgage Terms You Should Know

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