07/13/2022
The Bank of Canada(BoC) has raised rates once again, this time by 100 basis points, bringing the overnight rate to 2.5%. It was expected for the BoC to raise rates, however it was unexpected for this steep of a rate hike. As the Total Consumer Price Index continues to rise (7.7% last reported in May). The rate hike is to help control inflation. From a real estate standpoint, this will drastically reduce one's affordability. Those currently on a fixed mortgage will see no difference, however, those on a variable mortgage can expect an increase on their monthly payments. The next interest rate announcement is in September. Currently, it is unsure what the outlook for September is.
