The Bank of Canada Increases the overnight rate by .25% February 28, 2022

So what does that mean for you?  

If you have a variable mortgage you may want to reach out to your broker to understand precisely how it will affect your current mortgage OR your pre-approved rate should you be shopping for a new home right now. 
”When interest rates go up, they're going to pay a little bit more interest and relatively less principal,” (Robert Hogue, a senior economist with the Royal Bank of Canada.) “The overall payment is the same but you're just extending your amortization over time.” 
You will want to ensure your previously held pre-approval is still viable. It could mildly impact your purchasing power.
 
If you already have a variable rate mortgage then you will see your payments slightly increase but not dramatically. Basically it works out to about 12$ for every 100k. Probably won't break the bank. Even with the additional likely increases this year, the overall monthly payment increases will be moderate and remember buyers today are having to qualify for the stress test - in other words, the lenders had to qualify you against increases like this.


The really good news is that if you have a fixed mortgage you will not be affected at all.

Read more here: https://www.ctvnews.ca/business/how-interest-rate-hikes-could-affect-your-mortgage-payment-1.5762554

And as always, if you have any questions or are looking to speak to a mortgage specialist, please reach out and we’ll be happy to help you! AND make sure to sign up to receive our email updates by submitting your email in the bottom link "Stay in the loop": https://linktr.ee/DaveMasson