Since the middle of the first quarter in 2019, it’s been predicted that the Bank of Canada will cut their prime rate at least once.  Ever since, the market has been watching closely, yet the Bank has been steadfast in maintaining the status quo despite continuous pressure to make the cut.

The next scheduled rate announcement by the Bank of Canada is set for next Wednesday, December 4th.  While there are many that have been hopeful for a rate cut next week, it’s likely that we’ll see the Bank hold tight once again. Expect the wait to continue.

Pressure however continues on the Bank of Canada to lower rates.  We will see a rate cut. It’s just a matter of when. The global economy continues to slow. Consumer debt to income ratio is at a record high.  The trade war with China does not have any end in sight.  It’s just a matter of time before the Bank of Canada is forced to make the cut.  Until we see signs that the Bank is going to come through with a cut, fixed mortgage rates will likely remain similar to where they are now.

I mentioned above that the trade war with China has no end in sight.  This isn’t entirely true.  It’s likely that Trump will end the trade war right before the US election.  It’s an ace up his sleeve.

While there are current 5 year fixed rates as low as 2.29%, this is not an indication of where fixed rates are at the moment. This is a special promo that is significantly lower than anything else in the market right now.  Market rates are still hovering around 2.99%, with discounted rates for owner occupied properties are in the range of 2.54% – 2.84%, depending on your situation. It’s likely that fixed rates will remain around this level for the remainder of the year.

For anyone with a mortgage rate of 2.89% or higher, you may want to consider switching your mortgage mid-term.  With 5 year fixed rates as low as 2.29%, it’s a great opportunity that could potentially save you thousands…and that’s considering your penalty to break your mortgage early. Applications need to be in prior to November 30th if you want to take advantage of this rate, so you’ll want to act quickly.

Paul Meredith is the author of the Amazon #1 best selling book, Beat the Bank – How to Win The Mortgage Game in Canada, and has ranked as one of the top 75 mortgage brokers in Canada since 2016. He was a finalist for Mortgage Broker of the Year in 2018, and can be seen as the exclusive mortgage broker on season two of TV’s Top Million Dollar Agent.