The Bank of Canada today increased its target for the overnight rate to 0.5% from 0.25%.

This means for those of you with Variable rate Mortgages, rates would increase by 0.25%

This translates to an approximate monthly increase of $13 per $100,000 Mortgage balance.

So if you have a Mortgage balance of $500,000, this would mean an increase of around $65 per month.

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

Next announcement is on Wednesday Apr 13, 2022

Please feel free to reach out for further information pertaining to you specific situation.

647 901-7948
info@modomortgages.ca

Short answer:

1) Significant number of Canadians locking from variable into fixed rates out of fear rather than doing the actual math

2) Banks report record earnings as the result of the previous point

3) A ”Net” zero increase in prime rate (relating to variable rates) by year end. Might go up and then back down

4) The few remaining banks outside of the channel come into the broker channel or working towards it by year end.

5) 2020 Broker share will exceed 40% of market share

6) 35% down payment on investment residential properties

7) By 2026, Canada’s population will have increased by 4 Million

Long version:

Watch the video

For those of you with Variable rates who want to keep an eye on its movements.

8 announcements are made by the Bank Of Canada each year to determine the BOC (Bank Of Canada) rate, which will affect Variable rates.

Take a look at the 2022 pre-determined schedule.