For those eyeing the real estate market or living on a variable-rate mortgage, it’s time to let you know that the Bank of Canada (BoC) has done it again–for the fifth time this year.
As of 10:00 am this morning, the country’s interest rate has gone up by three-quarters of a percentage point, leaving it now at 3.25%.
For most, this increase doesn’t come as a surprise. With the ongoing effects of the COVID-19 pandemic, supply disruptions, and the war in Ukraine, inflation on a global-scale continues to stay high. And, when inflation is high, rates are raised to help reduce it. That’s why, like many other banks around the world, Canada is following suit by continuing with its quantitative tightening.
While it may not be the full percentage point raise like in July of 2022, the need to combat inflation has left the days of low interest rates in the dust. As it stands, this increase now makes Canada’s central bank one of the highest policy rates among other large economies.
For those on variable-rate mortgages, this may shake up your monthly payments yet again, but that doesn’t mean it’s all doom and gloom.
Despite the ever-changing interest rates, there are ways to help mitigate the increased cost:
While we have yet to see if this will finally be the end of the multitude of increases, now is a great time to make these decisions.
And if you think now is a good time to lock in a fixed-rate mortgage, connect with one of our mortgage advisors today and we’ll help you find the best option for you.