The Bank of Canada is raising its target for the overnight rate to 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent. It is most likely prime will follow with the full .25 percent increase within hours if not a day.
Should you lock in your mortgage? I would suspect this will be the last increase that is expected due to global economic factors, and political changes. This now has reversed the 2 decreases in 2015. I personally am staying the variable rate mortgage course (which is not a decision for everybody pending your personal circumstances). The average borrower with a 300k mortgage will see a monthly increase of $50 per month.
The full press release can be viewed here: https://www2.mambonetcom.com/cgi-bin/public/redir.pl?cid=477&rid=794442&id=2456
The next scheduled date for announcing the overnight rate target is October 25, 2017. The next full update of the Bank’s outlook for the economy and inflation, including risks to the projection, will be published in the MPR at the same time.
If you have questions on your mortgage kindly email us, or call 604-802-3983.
Angela Calla has been a licensed mortgage broker for 14 years. She has been with Dominion Lending Centres since its inception in January 2006. Residing in Port Moody, British Columbia, Angela is a regular expert guest on several news stations, television shows, radio programs and local and national publications. She was the AMP of the year in 2009, and has consistently been one of DLC and the industry’s top performers since 2006. She can be reached at firstname.lastname@example.org or 604-802-3983