The Bank of Canada today increased its target for the overnight rate to 1% from 0.5%.
This means for those of you with Variable rate Mortgages, rates would increase by 0.5%
This translates to an approximate monthly increase of $26 per $100,000 Mortgage balance.
So if you have a Mortgage balance of $500,000, this would mean an increase of around $130 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.
Static payments are offered by lenders such as TD and HSBC.
There are eight announcements per year.
Next announcement is on Wednesday Jun 1, 2022
Variable rates are linked to the Bank Of Canada overnight rate. The timing and pace of further increases in the policy rate, will be guided by the Bank’s ongoing assessment of the economy and its commitment to achieving 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.
647 901-7948
info@modomortgages.ca
https://calendly.com/info-36037/30min?month=2022-04
