Quote:
Originally Posted by Twisted Canuck
BOC announced their rate cut, they went a full 50 bps. I was wondering if they would follow fed all the way or just go 25 bps....
I think in the long term this is gonna bite the economy, and the markets, in the butt, but what do I know. Cheap money and people just pile up more debt seems like. Not a sustainable model.
In the meantime my (small) mortgage is up for renewal in June, and they were already offering me a pretty good rate for early renewal. I told them I was holding off because I expected a rate drop (this was a month ago)....glad I waited. Should get something very good in the next month or so.
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The 5yr CAD gov yield dropped ~0.65% since early Feb, so expect around that for a lower rate. I'm guessing March will be a better rate vs April, but markets aren't getting better so my guess is fall could be a better rate yet, but the 5yr yield is only 0.85% so no much room to go down? I'm no expert on this, but fixed rates are set off the bank yield which typically follows the BOC rate (but not always). I'm looking into my penalties for switching into the lower rates.