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Calgary mortgage broker, Tim Lacroix, explains it all

With the recent impacts to our economy and the downturn of the oil and gas industry, many of us have been concerned about the additional consequences that could potentially arise and hit us even harder, at home. Bank of Canada executives recently met and provided some important news for Canadian citizens. Read on as Calgary mortgage broker, Tim Lacroix, highlights the decisions reached yesterday.

The Bank of Canada confirmed on Wednesday, May 27th that the key-lending rate of 0.75% would remain for now. There is too much uncertainty surrounding the oil and gas industry to place movement on interest rates at this time. It was stated that any changes to interest rates would come at a later date, most likely the second half of 2016. So for now, this is good news for homeowners. Consider it a “no news is good news” type of situation.

Another piece of good news is that the Canadian dollar has risen. This is mostly due to the U.S. having a slow first quarter and seeing a higher price on oil. Experts will continue to observe this data going forward and report more as additional information surfaces.

Other topics discussed included inflation and household debt. Inflation is said to be secure at this time, but is expected to change in the near future. Household debt continues to pose a risk to many residents, but the situation is continuing to balance itself as expected.

The main thesis to come out of Wednesday’s meeting is that no large changes will be made until the Bank of Canada has additional time to measure the impact of the fallen oil and gas industry and weakened U.S. economy. These factors will most likely produce changes for all Canadians, but for now we can continue paying our current interest rates and wait for more data to surface.

If you have any questions regarding your lender rates or would like to discuss refinancing your home, call expert mortgage broker Tim Lacroix in Calgary at 403.648.1541 or visit today.