The Bank of Canada announced today that it’s holding its interest rate at 0.5%, accompanied by its continued message of modest economic growth this year.
“The stimulative effects of previous monetary policy actions are working their way through the Canadian economy,” a statement from the Bank of Canada said. It’s not surprising given that June was showing economic growth after 5 months of decline.
Benjamin Reitzes, an economist at Bank of Montreal, agrees with the Bank of Canada’s modest growth projection:

“The domestic economic data are the most compelling reason for the [Bank of Canada] to stay on the sidelines at this meeting. After a string of five consecutive negative monthly GDP prints, June blew away expectations with a 0.5% surge. With preliminary July figures looking decent (strong auto production & sales and solid exports), we’re pretty comfortable with our above-consensus forecast for 2.8% Q3 growth—the BoC projected 1.5% in the MPR. It’s also notable that the Bank was bang on with its Q2 forecast for a 0.5% contraction. So, with Q2 on target and Q3 tracking better, another cut at present makes little sense. Moreover, Governor Poloz didn’t seem particularly anxious to cut again during the July press conference.” (BMO Capital Market Economics Focus, 4 September 2015, p. 4)

So what does this mean for homeowners? It means that it’s still a great time to own a home. Low interest rates mean you end up paying less in interest over your term, and it lowers your overall monthly payments.
Contact us today to see how you can take advantage of low interest rates.