National Canoe Day was June 26 - A painting by my canoe obsessed friend Donald Bury.
On the premise that “good news is no news” no one is reporting a monthly drop in the Canadian Inflation Rate of 1% to 3.4% this month.
That’s a significant stride when compared to the 8.1% it was last year at this time. Its also fairly meaningful when you compare it to the rate in the US rate ( 4.05% ) and hen more so when you compare it to the UK (8.70%).
What does this mean for the mortgage borrower though?
Well, I think that in spite of the good news, the Bank of Canada is likely to increase the overnight rate slightly in early July. This is because they’re now being overly cautious after not being cautious at all when this inflationary cycle began.
I do think we’re back on track to seeing rates drop later this year, though.
In the meantime, I do recommend shorter term mortgages ( 2 or 3 year ) to be the best option, in spite of the immediate cost.
A bit of planning will conquer the economic craziness. Call me anytime to review your options.
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