12/07/2022
If you already haven’t heard the Bank of Canada has increased the overnight lending rate by 0.50%. This will take the overnight rate from 3.75% to 4.25%. This represents the 7th increase we have seen in 2022.
🔸The prime lending rate will be adjusted from 5.95% to 6.45%.
🔸If you are in an adjustable variable rate mortgage your payment will be increased $30 for every $100k borrowed
🔸If you’re in variable rate mortgage with a static payment your payment will not change, but you may be close to or at your Tigger rate. This is when a portion of your monthly payment will no further be going towards principal and all towards interest. In this case, you may have to increase your monthly payment, or make a lump sum payment to reflect the rate increases to keep your amortization schedule on track.
🔸The good news is the Bank of Canada has suggested they are considering no further rate increases going forward into 2023, which is the first time they have suggested this. This could signal we are at the tail end of any further rate increases.
If you have any questions about your variable rate mortgage, or need any further clarification please don’t hesitate to reach out.
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📲 250-507-0008
📧 [email protected]
🖥 tomfisherrealestate.ca
