While attending a wedding in Dallas Texas, we decided to go to Speed Zone and go drag racing. While in the car I felt compelled to briefly explain the key indicator predicting a change in the VRM (Variable Rate Mortgage). If you are curious, I came in second place. To give you a quick breakdown, the main key indicator of where the VRM is going would be inflation. A comfortable percentage for inflation is 2 percent. Once inflation exceeds this number the government will very commonly increase the over night lending rate (which effects the Prime rate) to curb inflation. If you have loans dictated by Prime, I would certainly pay attention to inflation. To find the current inflation rate, go to www.jessijohnson.ca and the rates are always posted there. As an alternative, you can navigate to the Bank of Canada’s website here: http://www.bankofcanada.ca/en/index.html