Bank of Canada has increased their overnight rate by 25 basis points, pushing prime to 6.95%. Although this was partly anticipated by the market, it is the Bank’s first-rate hike since January. The highest rate since April 2001.
This move impacts variable rate mortgage holders and those with a Line of Credit of approx. 14 dollars per 100k in borrowed funds In the Bank’s announcement, it stated that consumption growth has been “surprisingly strong,” and the rise in inflation in April was a key reason for the decision. As a result, the Bank determined that the current monetary policy was not restrictive enough to restore the balance between supply and demand. Hikes will not be over if inflation continues to rise.
The next announcement is July 12th, 2023. If you’re wanting to chat further about this and what mortgage options are available to you, connect with us at angela@countoncalla.
Angela Calla is an 19-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 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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