As you know, your variable rate mortgage, lines of credit and/or student loans are all based on the Prime Rate and as promised, here is your personal update regarding the recent Bank of Canada announcement on changes to their Overnight Rate which in most cases impacts your Prime Rate.
At 9:00 am EST, Wednesday September 5th, 2012, the Bank of Canada again did what all expected them to do… they maintained their overnight rate. What this means to you is that the prime rate on your mortgage or line of credit will not change and remains at 3.00%. This is great news because you still have an incredibly low interest rate. To make the most of your continued low payments, please consider chatting with a financial advisor about a Tax Free Savings Account or RRSP contributions to trigger a potential income tax refund next year! If you don’t have a financial advisor, please let me know and I’d be happy to introduce you to a trusted adviser.