The Bank of Canada raised its key lending rate by 0.75% today. This means most lenders will raise their prime rate to 5.45%.
Watch the video below to learn how this will affect your mortgage.
If you are in a fixed rate mortgage, nothing changes for you.
For Variable Rate Mortgages with static payments (VRMs):
Your payment amount won’t change unless you’ve reached your trigger rate – when your payment no longer covers your interest. Your lender will communicate any increase and the effective payment date. To stay on track, you should look at voluntarily increasing your mortgage payments.
For Adjustable Rates Mortgages (ARMs:
You will see an increase to your mortgage payment of about $39 per $100,000 mortgage. Your lender will communicate your new payment amount and the effective payment date. If you’re thinking about locking into a fixed rate, let’s talk first.
No matter your mortgage type or rate, if you’re like many Canadians, your wallet may be feeling the pinch right now. Reviewing your budget can be a game changer! Check out the below calculator to see what this means for you or book an appointment for Lisa to help you with a budget.
Mortgage Calculator: https://itools-ioutils.fcac-acfc.gc.ca/MC-CH/MCCalc-CHCalc-eng.aspx
FYI, the next Bank of Canada Announcement will be on October 26th.
Now more than ever, it’s important to have a solid mortgage advisor to help you navigate the complexities of the market and the nuances of your personal situation. If you want to discuss yours, please book a call using the link below.
Schedule a call: https://schedule.nylas.com/lisa-30min