As of 10:00 am this morning, the Bank of Canada has announced the first rate increase of 2023, marking the eight consecutive increase in the past year.
Now the country’s interest rate has risen by 25 basis points, making the country’s prime rate 4.5%—the highest it's been since 2007.
While many might be hoping for a light at the end of the tunnel–given how inflation has decreased slightly in some countries–this rate increase will still impact those with mortgages, or looking to get one.
For those with variable-rate mortgages, this means you’ll see another increase to your monthly payments in the coming weeks.
For those opting for a fixed-rate mortgage, it may be time to consider locking in now before another potential increase. The next rate announcement is scheduled for March 8, 2023.
For current homeowners who might be on a variable-rate mortgage, if you’re concerned that this new rate increase will push you even closer to, or bring you right to, your trigger rate, it might be time to consider locking into a fixed rate.
All you need to do is take 10 minutes or less to fill out our application and we’ll get you connected with one of our trusted mortgage agents to help you figure out the best decision for you.