Although interest rates are not likely changing anytime soon, the day of reckoning is FAST approaching.

In the meantime, Flaherty’s cutting elsewhere.

It’s expected tomorrow that Jimbo will be cutting loan-to-value ratios on refinances from 90% to 85%

An amortization reduction is also rumoured to be in the cards, going from 35 to 30 years.

Pressure is definitely building towards a rate hike. A few days ago, the C.D. Howe monetary policy council — a panel of hand-picked economists from the private sector and academia — told the governor the time has already come and he should hike the trendsetting rate 25 basis points to 1.25 per cent on Tuesday.

“I don’t think it’s a close call for Carney at all (Tuesday),” said Porter. “The market has factored in a one per cent chance of a rate hike.”

Flaherty continues to hint he wants the banks to rein in home-equity loans and suggests he is prepared to do it if lenders won’t.

Looks like he’s not waiting. This change is also rumoured to be coming down the pike tomorrow by way of no insurance being offered on Heloc’s.

What do you think? Please Leave your comment below.

Mark Fidgett
Vancouver Mortgage Broker