The Bank of Canada (BoC) has made the decision to increase interest rates by 0.25% today.  You can view the announcement here: Bank of Canada Announcement

Here are a few key points to consider regarding this rate increase:

1. Borrowing Costs:  With the rate hike, borrowing costs for individuals and businesses will likely increase. This affects mortgage rates, credit card rates, and loans. If you have any outstanding debt or are planning to take on new debt, it would be advisable to reassess your options and consider the potential impact of the higher interest rates. The financial impact it has is approx. $16 dollars per 100k in borrowed funds on a 25-year amortization. Ensure to get a rate hold if you are coming up for renewal or plan to make a purchase in the next 6 months.  Here is our app to download to see what a current payment can look like for you My Mortgage Toolbox.
2. Fixed-Income Investments: The increase in interest rates may have an impact on fixed-income investments such as bonds and GICs. Generally, when interest rates rise, the value of these investments can decline. It would be beneficial to review your fixed-income holdings and discuss any necessary adjustments to your investment strategy with a financial planner, we can make an introduction for you by simply replying to this email address with your phone number.
3. High Interest Savings Accounts: Interest rates are at an all-time high in today economic environment so those to looking to make a purchase in upcoming years can benefit from that silver lining along with the new First Home Savings Account.

If you have any questions or concerns regarding this rate increase or its potential impact on your mortgage or HELOC, for you or a loved one please feel free to reach out to us directly. We are here to support you and help you achieve your financial goals even in the face of market fluctuations.

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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