The Bank of Canada raised its key lending rate by 0.50% earlier this week. This was the 6th consecutive increase by the Bank of Canada and most lenders have raised their prime rate to 5.95%.
For those in a variable rate mortgage, this is an increase of $29 for every $100,000 of your mortgage.
I understand it is frustrating to watch your payments increase, significantly in such a short amount of time. If you choose to lock into a fixed rate, and interest rates fall, you’ll be committed to paying the interest at that fixed rate until the end of the term.
Remember: Breaking a fixed-rate mortgage comes with higher penalties.
If you want to lock into a fixed rate, contact your lender to find out what the fixed rate is that you are offered, then send me the details or book a call with me. We can review the offer and some of the other factors that you need to consider before making the change.