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What does the Bank of Canada rate increase mean for you?
July 18, 2017 | Posted by: Dana Stauber
Bank Of Canada Raises Interest Rate by 0.25%
The Bank of Canada increased the overnight interest rate to 0.75% from 0.50% on Wed. July 12, 2017. It was the first rate increase in 7 years.
The BOC will continue to monitor the economic growth and inflation rate closely in the coming months before deciding if another rate hike is in order.
I will keep you posted on further developments on this as we know more.
What does it mean for variable-rate Mortgages?
If you have a variable rate, you can expect a slight bump in your payment. A $300,000 mortgage would see your payment rise by approximately $37/month.
What does it mean for fixed-rate mortgages?
If you have a fixed rate, your current rate will remain unchanged until your mortgage comes up for renewal.
You may have an option for an early renewal. If you are interested in exploring this, reach out to me and I would be happy to do some math to see if it makes sense to renew now, or wait until the end of your term.
