Last week, the Bank of Canada announced another rate increase. For anyone I’ve been speaking with for the last few months, last week’s rate increase announcement is unwelcomed but not a shock. We have been budgeting the payment assuming a .50 basis rate increase.
As for anyone with an existing adjustable rate mortgage, you will see an increase to your payment. Economists are predicting this being the last one and assuming we don’t have any major world crises, we should see rates coming down near the end of 2023. This is not permanent.
Canadians have changed their spending habits and though it feels like a bad dream, this too shall pass.
For the record, I’m staying the course with my adjustable rate mortgages because I’m confident in the long run that I will save me more money.
However, if you’d like to review your options for locking into a fixed rate to ensure your payments stay the same, we currently have a 5 year fixed option at 4.99% (free switch/no legal fees).
Book a call with me for a financial review to see if you qualify and how much your fixed payments could be!