The Bank of Canada holds its key interest rate unchanged today for the 12th straight time. Commenting that the Canadian economic outlook was “marginally improved”, and global economic uncertainty had decreased. There is some concern about Canadians household debt leading to domestic economic problems when interest rates move from their historic lows. Analysts survey by Reuters last month expected to keep interest rates unchanged until the second quarter of next year.
So what does this mean for us?
Well, it remains a very affordable time to become a home owner. It is important to pay attention to the underlying warning, these interest rates are not going to be around for ever and if we have built up any debt in the last few years it is time to consider getting them under control.