As expected, the Bank of Canada has raised its prime rate by 0.75%. What this means is that your monthly payments will increase by approx. $42 per $100,000 on your mortgage if you are on a variable rate mortgage. Here is the Bank of Canada statement. What this translates to is a prime rate held by most banks of 5.45%. As always, fixed-rate mortgages are not affected by this change.
Current lock-in rates are sitting at over 5%, so many are staying with their variable-rate mortgage to keep cash flow freed up. Locking-in means an expectation for rates to go beyond 6% and to stay there for a significant amount of time. While we can’t predict when this will stop or how long this will last here is an interesting article that shows the last 30 years of cycles with interest rates.
It should be noted the Bank has indicated they are not done with hikes. A mortgage strategy for any upcoming renewal by starting early, refinancing to consolidate payments and improving cash flow will be key as we go through these changing economic times. Here is a segment we did on this for Global News.
For a more in-depth analysis from us, here is a post detailing today’s change and its impacts. As well, if you are looking to contact your lender, you can find their email HERE.
The Angela Calla Mortgage Team is here to guide you with your mortgage always, if you have any questions please reach out to us at callateam@countoncalla.ca
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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