Interest Rates are Down and Down Again - Kora Management
  • Mitch Speigel – Mortgage Agent
    Your Mortgage Group Professional
    Kora Management
    License #M08003984, FSCO #10315

  • Interest Rates are Down and Down Again

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    The Bank of Canada has been threatening a decrease in interest rates for months. It is very important for a mortgage person to keep track of these things, for the benefit of his clients and just to keep up with the industry.

    I left the country for one week only and the Bank lowered the overnight rate by 50 BSP, or ½%.  I like to be around when these things happen so I can keep my clients informed, but no; they did it without me, at a regularly-scheduled Bank of Canada review meeting.

    And then, they did it again.

    Out of the blue, the Bank held a special; meeting and lowered the bank rate again to the surprise of all and by another whopping 50 bps, or 1/2%, bringing the overnight rate to 0.75%. Furthermore, they said they are prepared to cut rates further. “We will be monitoring closely if financial institutions pass on the full discount to their Prime rate over the next few days.” This time, however, I was here to get the news early.

    Blame it on the Coronavirus.

    “It is clear, (They say.), that the spread of the coronavirus is having serious consequences for Canadian families, and for Canada’s economy. In addition, lower prices for oil, even since our last scheduled rate decision on March 4, will weigh heavily on the economy, particularly in energy-intensive regions.”

    Time to do a quick refinancing.

    If the financial institutions follow this lead, and it is likely that they will, this would be a perfect time for many to refinance.

    Please call us at 866-435-3748; info@koramgt.com.

    We just returned from Mexico, where it was a habit to make guacamole at the table, like Caesar’s salad at a fancy restaurant.
    Cut an avocado in half and scoop each half out of the shell carefully. Chop seeded tomatoes, shallots and cilantro and add to the top of the avocado. Add a splash of olive oil, lots of lime juice and salt and pepper.  Mash to the desired consistency.