This morning marked the Bank of Canada’s final rate announcement for 2019.  As expected, they have once again kept their rate unchanged.  Prime rate remains 3.95%. Earlier in the year, it was predicated that we would see at least one rate cut from the BOC before the end of the year. The wait will however continue.    

The next scheduled rate announcement is January 22nd, 2020.  Chances are stronger that we’ll see a rate cut at that time, however the Bank of Canada has been disappointing us all year.  Should they keep the rate unchanged again in January, it’s quite likely that we’ll see the cut at some point in the first half of 2020.  The last time they cut their overnight rate (which is what prime is based on) was July 17, 2015.  As they have never gone more than 5 years without a rate cut, maintaining the status quo throughout 2020 would be unprecedented. It’s very likely that we’ll see the cut. It’s just a matter of when.

5 year fixed mortgage rates remain as low as 2.34%, however these are for high ratio (CMHC insured) purchases or switches only.  For non-insured mortgages, 5 year fixed are as low as 2.39% for those with 30% or greater down payment (or equity if you are switching a current mortgage). The mortgage must close by January 17th in order to be eligible for these rates. The purchase price must be under $1 million OR the property must have been purchased prior to November 30, 2016. 

Paul Meredith is the author of the Amazon #1 best selling book, Beat the Bank – How to Win The Mortgage Game in Canada, and has ranked as one of the top 75 mortgage brokers in Canada since 2016. He was a finalist for Mortgage Broker of the Year in 2018, and can be seen as the exclusive mortgage broker on season two of TV’s Top Million Dollar Agent.