As widely speculated, the Bank of Canada has increased their overnight rate by .25%.. How does this affect you? Well if you are in a variable rate mortgage then expect the prime rate to increase from 2.25% to 2.50% and your payment to increase by .25%. This translates to an increase of $12-18 payment per month per $100,000 of mortgage dependent on your amortization.
The variable rate is still a very attractive option at prime -.60% which is 1.90% after the increase. Best fixed rates are still in the range of 4.29-4.39 for a 5 year closed.
Kim Gibbons, ” Your Mortgage Superhero ®”
FSCO lic. M08001363