As expected, the Bank of Canada announced yesterday that it is not changing the benchmark rate. If you have a variable rate mortgage as the prime rate should stay at 3% and it’s unlikely we’ll see any increases in the near future. The next rate setting day is April 16.
Eight times a year, the Bank of Canada sets the rate that governs each lender’s prime rate. The lenders base their decision on this rate because it influences their own borrowing. Variable rate mortgages and lines of credit move in conjunction with the prime lending rate. Fixed rates are different and are based on the bond market.