In a press release today, December 4, 2013, the Bank of Canada stated the Overnight Rate target remains at 1%. The Bank of Canada has maintained this rate for over 3 years and it's expected to remain at 1% until mid 2014. The Mortgage rate most impacted by the Bank of Canada Rate is the variable rate. A variable rate mortgages is tied directly to the prime lending rate, which is in turn influenced by the overnight rate. When the overnight rate changes, the prime rate typically changes by the same amount. If there is an increase in the prime lending rate, the rate of variable rate mortgages will also increase. When the Prime Rate is low, this is typically the time more people choose a variable rate. In this past year, according to statics from the Bank of Canada, the Prime business ('prime rate') has remained at 3% and the Conventional mortgages have averaged 3.08% for One Year Conventional Mortgage, 3.74% for Three Year Conventional Mortgage, and 5.23% for the Five Year Conventional Mortgage. A Conventional mortgage is a mortgage that does not exceed 80% of the purchase price of the home. Whether you should lock into a fixed rate or choose a variable rate or a combination of both depends on many things. If you are looking for sound advice on mortgage rates and an assessment of personal risk tolerance, your mortgage broker can assist you in presenting you with choices to help make the decision easier. If you don't have a mortgage broker, Ratemart.ca can assist you in finding best mortgage brokers in Canada. You can search our mortgage brokers by Province and City or get a Personalized Mortgage Quote and we will have a mortgage broker contact you.