The Bank of Canada raised its key lending rate on September 7 by 0.75% and all consumer banks followed suit and raised their consumer prime rate to 5.45%.
If you are in a fixed rate mortgage, nothing changes for you. But there are details you need to know about variable/adjustable rate mortgages and how each affects your household budget.
Your payment amount won’t change unless you’ve reached your trigger rate, meaning 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.
You will see an increase to your mortgage payment. Your lender will communicate your new payment amount and the effective payment date. If you’re thinking about locking in to a fixed rate, let’s sit down and have a chat first. Most people who have non-fixed rates are in this type of Adjustable mortgage.
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! By taking a close look at where your money is going, you may be able to find some savings that can help ease the squeeze. For example, if you have a mortgage, you may be able to refinance to get a lower interest rate. Or, if you're carrying credit card debt, you may be able to transfer the balance to a card with a lower interest rate. Of course, every situation is different, so it's important to work with your Mortgage Broker to find the solution that's right for you. But if you're looking for ways to save money, reviewing your budget is the best place to start!
Now more than ever, it’s important to have a great Mortgage Broker to help you navigate the complexities of the market and the nuances of your personal situation. If you want to discuss yours, please call Chris Marriner at 403-894-8836
Heads up, the next Bank of Canada Announcement will be on October 26th and we anticipate another increase