Jeff MacKinnon

Honest, hard working and thorough

Bank offers interest rate below one per cent

Some potentially big news came out Friday when a Canadian bank announced it was going to offer an interest rate below one per cent.

It's believed that HSBC announcing a variable rate of 0.99 is the first time a major Canadian bank has advertised a rate below one per cent.

It's a five-year variable rate for high-ratio mortgages where the buyers have put less than 20 per cent down on a owner-occupied property.

The Bank of Canada has promised to keep its posted interest rates low until at least 2023 in response to the COVID pandemic and the pandemic so far not slowed real estate business in the country.

The Calgary Real Estate Board just released it's monthly report for November in which it revealed improved sales in its jurisdiction for a sixth-straight month. This coincides with the Calgary market showing a reduction in available listings. On a year-to-date basis, new listings have eased by nearly 10 per cent and are at the lowest level recorded since 2001, CREB's report stated.

“The gains in sales in the latter part of this year have been a bit surprising considering the job losses and unemployment rate in our city,” said CREB chief economist Ann-Marie Lurie.

“However, it is important to note that the shift to more balanced conditions has been mostly driven by the reduction of supply.”

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