Yesterday, the Bank of Canada announced its first rate increase of 2022 (and since 2018!). Economists are predicting that they will make several more increases this year - starting 2022 off at .5% and ending at 1%.
〉If you're in a fixed rate you may not feel this increase until it's time to renew your mortgage.
〉If you're in a variable rate you may feel the impact within days or even already. Typically, in a variable rate your payment will stay the same but as rates rise more of that payment will go towards interest and less towards principle.
〉If you're looking for your next home - the increases may affect your purchasing power. If you're planning to move within the next four months, most lenders will offer a guarantee on their rates, so have a conversation with your lender today. If you need a recommendation let us know and we can connect you to a trusted partner.
If you want to know down to the dollar how any increase will affect you the Globe and Mail has some great calculators HERE.
It seems like everything from gas to groceries to utilities are increasing daily now. It is overwhelming, frustrating, scary, and at times confusing. We're not just here when it's time for the For Sale sign, if you want to know how these announcements affect you just send us a message or call.