The Bank of Canada will be raising interest rates on variable-rate mortgages by 0.5%. What this means is that your monthly payments will increase by $26 per $100,000 on your mortgage if you are on a variable rate mortgage. Here is the Bank of Canada statement.
This comes as no surprise as Canadian inflation has been at historic highs as of late. Fixed rates have been rising more rapidly than prime rates over the past few weeks, meaning that qualifying rates have increased, as well as reduced the overall access to mortgage funds as rates return to pre-pandemic levels.
The very best planning advice we can give you is to make your mortgage payment today as if it were a fixed rate, this will avoid potential future payment shock and help you pay your mortgage off faster.
To see some examples that may help you decide the right balance of payment for your budget download our app HERE.
To gain a little more perspective on the fixed vs variable here is a Global News segment we did last month and a blog post in anticipation of today.
Regardless of whether you are fixed or variable, this is the time to pay close attention to your mortgage plan as we continue to venture into unknown waters. Our team is here to answer any questions you may have regarding your mortgage, whether it be a renewal, consolidating debt, or considerations for an upcoming purchase!
The Angela Calla Mortgage Team
Angela Calla is an 18-year award-winning woman of influence which sets her apart from the rest. Alongside her team, Angela passionately assists mortgage holders in acquiring the best possible mortgage. Through her presence on “The Mortgage Show” and through her best-selling book “The Mortgage Code“, Angela educates prospective home buyers by providing vital information on mortgages.
In August of 2020, at the young age of 37, Angela surpassed $1 Billion dollars in funded personal mortgages. In light of this, her success awarded her with the 2020Business Leader of the Year Award.
Angela is a frequent go-to source for media and publishers across the country. For media interviews, speaking inquiries, or personal mortgage assistance, please contact Angela at hello@countoncalla.ca or at 604-802-3983.
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