Another Bank of Canada Rate Hike… Are we there yet??
It feels like we've been in this 'rate-hike' for a while. It's actually only been a few months since the first increase started on March 2, when the benchmark rate sat at 0.25%. Since March, the central bank has raised its benchmark rate a full 3.0%. After today, lender prime rates will (likely) rise to 5.45% from 4.70%. Will the BoC hold now? Possibly. Maybe. 🤞 Inflation is still high, but down from its June 2022 peak. Some prices, like for gas, have eased. House prices are cooling in the larger markets, like Toronto and Vancouver. Home sales are tempering with less robust demand — tapping the brakes on the market insanity that brought intense bidding wars and no-conditions offers. Your variable rate mortgage payments are about to increase again With your Adjustable-Rate Mortgage (ARM), your floating payments will float higher in your next full payment cycle. For example, on a $500,000 mortgage, if you have our current lowest variable rate of 3.50% your rate will now be 4.25%, which means an extra $200 per month to soak up. Are variable rates still popular? Despite the BoC's recent rate hikes, our clients are still interested in a variable rate over a fixed