Are you in a Variable Rate Mortgage and worried about what’s going to happen to your Mortgage payments with the next Bank Of Canada rate hike?

Let’s discuss your options and figure something out

647 901-7948
info@modomortgages.ca

Available to answer any Mortgage related questions or concerns!
647 901-7948
info@modomortgages.ca
Book a Call

With current market conditions and rate increases, we are reaching a point where many of us might see a payment reset on variable rate Mortgages with static payments.

Feel free to reach out to discuss your options and where you stand

647 901-7948
info@modomortgages.ca

The Bank of Canada today (Sep 7, 2022) increased its target for the overnight rate to 3.25% from 2.5%.

This means for those of you with Variable rate Mortgages, rates would increase by 0.75%
This translates to an approximate monthly increase of $39 per $100,000 Mortgage balance.
So if you have a Mortgage balance of $500,000, this would mean an increase of around $195 per month.

Also note that if you have a Variable rate with static payments, your payments will remain the same, however the interest portion of that payment would increase.

However, depending on your lender, you might have reached a point where you might need to increase payments, or pay a lump sum amount. Make sure you reach out to your lender to understand where you stand.
If you have an Adjustable rate, this means your payments would increase, while preserving the original principal/interest ratio and Amortization (years to pay off your Mortgage)

There are eight announcements per year.
Next announcement is on Wednesday Oct 26, 2022

Variable rates are linked to the Bank Of Canada overnight rate. The Governing Council remains resolute in its commitment to price stability and will continue to take action as required to achieve the 2% inflation target.
Fixed rates on the other hand are linked to the bond market, which has already been on the rise since last year.
Please feel free to reach out for further information pertaining to your specific Mortgage situation.

* NEW TIME/DATE***
Wednesday Sept 7th @ 7pm FINANCIAL LITERACY TALK
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