Economic Update: What National Interest Rate Increase Means for Homeowners
The Bank of Canada has recently announced that it is increasing the overnight rate by .25 per cent, given bolstered confidence in the Bank’s outlook for economic growth. This increase was widely expected by most economists. The Bank noted that very strong first quarter growth will moderate for the rest of the year but will “remain above potential.” Given the improved outlook, the Bank deems that “withdrawal of some of the monetary policy stimulus in the economy” is warranted. The next rate-setting day is September 6th.
Homeowners with variable-rate mortgages will likely see their rate increase along with a possible modest payment increase; lines of credit will be similarly affected. Keep in mind that any slight increase will likely still keep your variable rate below current fixed-term mortgage rates. You should get in touch if you have a variable-rate mortgage and have questions regarding your mortgage strategy and whether you should lock in or not. Or perhaps you need a new mortgage, are renewing, or are looking to improve cash flow by consolidating debt at lower-cost funds.
You need to have confidence in your mortgage plan and that’s why professional mortgage advice is so critical. Be sure to work with an experienced mortgage broker who has access to a wide range of lenders and knows the right questions to ask to assess your situation and provide the best mortgage for your needs. You’ll save yourself a lot of time and stress!
| Terms | Posted Rates | Our Rates |
|---|---|---|
| 6 Months | 3.14% | 3.10% |
| 1 Year | 3.04% | 2.39% |
| 2 Years | 2.84% | 2.14% |
| 3 Years | 3.44% | 2.34% |
| 4 Years | 3.89% | 2.44% |
| 5 Years | 4.64% | 2.54% |
| 7 Years | 5.30% | 2.89% |
| 10 Years | 6.10% | 3.29% |
| Prime Rate | 2.70% |
| 5-year Variable | 2.00% |
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Rasha Ingratta & Mortgage Associates
By Mortgage Intelligence
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