Bank of Canada steps ahead in providing better rates by reducing its key interest rate by a quarter-point, for the mortgage loan seekers who are planning to get the mortgage in the year 2008, it has been a better time, there are a lot of people who will benefit the offer because of heavy snow and cold weather have prolonged their planning to get into the mortgage financing requirement and formalities. So maximum people will get the opportunity by providing maximum business to the banks and other lenders at the beginning of the year.
Bank of Canada’s lowering key interest rate announcement, where provide enthusiasm for the mortgage shoppers to act now but on the other hand this overnight rate change has given the home-work to the mortgage lending companies and brokers who have been ready with their calculations and looking for the better time and weather in which maximum people will come out. Canadian mortgage lenders will be under competitive pressure to decrease their rates for the variable-rate mortgages and lines of credit based on the prime rate. Moreover, most of the lenders will need more information and consultancy service about how a particular lender may implement a variable rate change because it’s possible their calculation will differ from the other when exactly they adjust their variable rates. However, this overnight interest rate fall by the Bank of Canada will not likely to create any impact directly on the fixed-rate mortgages as compared to the bond market, which is the key factor primarily responsible for direct and instant effect over the rate and market of the fixed-rate mortgage.
Although Canadian fixed-rate mortgages are fairly steady in their interest rates these days, still you have an option to get an opportunity to adopt the new interest rate for your fixed-rate mortgages, if its lower than the previously adopted interest rate and if you are on hold for the low-interest rate on your fixed-rate mortgages then you still have an opportunity to stick with the prevailing lower interest rates while at the high-interest time.