October 2018 to March 2020 – Prime Rate Canada: 3.95%
Change (March 4, 2020) – Bank of Canada cuts it’s key interest rate by 0.50% (half a percentage point) to 1.25% from 1.75% as an attempt to soften the economic impact of the Covid19 outbreak.
Result – Prime Rate Canada: Drops from 3.95% to 3.50%
Change (March 13, 2020) – As the pandemic worsens, Bank of Canada delivers an emergency rate cut by another 0.50% (half a percentage point) from 1.25% to 0.75%… a level last seen in August 2017.
Result – Prime Rate Canada: Drops from 3.45% to 2.95%
Change (March 27, 2020) – The economy takes a huge hit and panic kicks in as governments start taking stricter control over the Covid19 pandemic. Bank of Canada delivers another emergency rate cut, again by 0.50% (half a percentage point) from 0.75% to 0.25%… a low last seen in 2008-2009
Result – Prime Rate Canada: Drops from 2.95% to 2.45%
It’s no coincidence that the Key Interest Rate and Prime Rate Canada have dropped amid the pandemic. The pandemic poses great threats to the economy… something we’re all experiencing by this point in time.
But what does a drop on the Prime Rate Canada mean for you, and what questions should you be asking industry professionals if you have a mortgage or are looking to purchase? Should you choose a Fixed or Variable rate as a result of the new Mortgage Prime Rate?
Watch our video and give us a shout for more information. (905) 455-5005