On Tuesday, the Bank of Canada kept it’s record low 0.25 percent interest rate steady for another announcement date, but warned it is going to be raising the rate June 1st.
The response for the Canadian dollar was to increase 1.5 cents to slighly above par with the American dollar.
How does this affect lending? Once the bank does act, short-term rates and variable mortgages are also likely to be increased.
Investors have not had a good Spring – with new lending practices in place and interest rates set to rise in the near future, investors are having a tough time qualifying for mortgages, and as a result, vendors are seeing their investment properties on the market longer than expected!
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GaraMark Property Management is located in Winnipeg, Manitoba and successfully balances protecting the investment of an owner while retaining happy tenants.