The Bank of Canada hiked its key overnight rate on Thursday, July 11, 2018 by 25 basis points to 1.5%. The tone of the press release from the Bank emphasizing the need for higher interest rates to keep inflation near its target.
What does that mean for you? If you are in a Fixed Rate mortgage nothing much will change until renewal. If you are in a Variable Rate mortgage it means about $13 per $100,000 of your mortgage. If you have a $300,000 mortgage that’s $39 more per payment for each .25% jump in the Variable rate.
For those in a Variable Rate mortgage and considering the seeming safety of the Fixed Rate check out this video before you jump ship on the Variable!