No interest rate hike in April, unlikely in July: Kinch

Historically the Bank of Canada (BoC) avoids changing monetary policy during elections to stay nonpartisan, he said at CRE’s Investor Forum, on March 25 and 26. So he advises anyone with a variable rate mortgage to “keep floating.”

“[The BoC will] stand back and let the politicians do their thing and then come back in and take over the economy once the mess has been all cleaned up,” he said.

Kinch does recommend, however, that investors increase their mortgage payments to build up more equity and to provide a buffer when rates inevitably go up later this year.

As for the BoC’s July announcement, Kinch said an interest rate hike at that point is unlikely too because real estate activity is slower during the summer months.

If the BoC were to raise its key lending rate, it would reduce real estate demand 5% more than what is normally expected.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?