First Foundation’s Best Rates of the Week:
1 Year 2.89%
2 Year 2.49%
3 Year 2.99%
4 Year 3.09%
5 Year 3.29%
7 Year 4.49%
10 Year 4.79%
ARM / Variable 2.90%
Line of Credit 3.50
Qualifying Rate 5.29%
Prime Rate 3.00%
Toronto’s main stock closed moderately lower on Tuesday, giving up earlier gains that
took it to a one-month high, as pessimism set in over an upcoming European summit. World stocks stumbled after the cancellation of a meeting of European finance ministers raised doubts that the upcoming summit will result in a clear plan to rein in Europe’s debt crisis.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 52.53 points, or 0.43 percent, at
The Government announced last week that the CPI rate for September 2011 increased by 3.2%, and core inflation, which removes more volatile inputs like food and energy from the equation, rose 2.2%.
Normally, because September’s inflation exceeded the Bank of Canada’s (BoC) target of 2%, the Bank of Canada would have moved to increase the overnight lending rate today when they met and then by association, the prime rate would have also increased. The prime raten is used in variable mortgage rates and Home Equity Line of Credit.
However, federal finance minister Jim Flahrety made it clear last week after the CPI announcement that domestic inflation would not be influencing the decision to move prime this time around. With the US and Europe’s financial woes still wreaking havoc on the world markets, both the governement and the BoC believe it’s clearly not the right time to make a change regardless of our own financial health. In fact, a new Rueters Poll poll suggests that experts are now pushing the estimate for an increase to prime until 2012’s third quarter.
Read the Bank of Canada’s commentary here
If prime is holding until this time next year, are you wondering if the variable rate at 2.90%, even with it’s recently reduced discount on prime is still a good deal? Call one of our licenced mortgage broker to find out today!