Canada’s economy had strong momentum through late 2020. However, the increase of COVID-19 cases and the reintroduction of lockdowns caused a serious setback for many.
Unemployment has increased nationally, and workers in the service industry have been hit the hardest, due to the latest lockdown measures.
So, to help keep interest rates on your mortgage low, Bank of Canada has promised to continue its quantitative easing program until everything is back on track again.
Canada’s prime rate sits at just 2.45% – which is the lowest it’s been since 2008.
As the Governing Council gains confidence about the recovery, the pace of the net purchases of Government of Canada bonds will be adjusted as they see fit.
It’s likely that interest rates will remain low for a long time because of the global pandemic.
Bank of Canada’s next scheduled policy announcement is March 10, 2021.
We will continue to keep you updated with mortgage interest rates throughout these hard times.
The Mortgage Winners team is committed to giving you clarity and guidance when it comes to making informed decisions about your mortgage.
If you have any questions feel free to get in contact with a member of our team today.
