03/07/2023
The question on everyone's mind...
Finally, some good news from Chief Economist - Dominion Lending Centres, Dr. Sherry Cooper. We've heard many predictions of what may happen when the Bank of Canada meets again on March 8th. But Dr Cooper believes we won't see a rate hike this month. Read below for more...
The Bank of Canada was the first major central bank to hit the pause button on rate hikes in late January. Given the slowdown in inflation in the recently released January CPI, The Bank of Canada will refrain from hiking interest rates this month.
That is welcome news for homeowners with adjustable-rate mortgages whose rate has risen 425 basis points in less than a year.
Variable-rate mortgage holders with a fixed payment have largely hit their trigger points if they bought in the past couple of years. While their monthly payments have not risen, many are not covering the higher interest costs on their mortgages. Hence their principal outstanding is rising. Little is known about how the lenders will handle that when it comes time to renew.
Let's hope Dr. Cooper's predictions are correct, and although the Bank of Canada may not be dropping the overnight rate yet, a slowdown is welcome by variable rate mortgage holders.
