What mortgage owners need to know about the Bank of Canada rate hike
BNN Bloomberg
The Bank of Canada’s latest interest rate hikes will continue to impact some Canadians looking to pay off their mortgage, according to one expert.
On Wednesday, the Bank of Canada increased its policy rate by half a point to 3.75 per cent, marking its sixth consecutive interest rate increase. In the central bank’s most recent Monetary Policy Report, it said individuals renewing a mortgage are seeing some of the largest increases in borrowing costs over any tightening cycle of the past 30 years.
In the report, the central bank noted that a homeowner looking to renew a five-year fixed-rate mortgage, obtained in October of 2017, would now face a mortgage rate around 1.5 to two percentage points higher.
Amid the recent hike, Rob McLister, a mortgage strategist with MortgageLogic.news, said individuals who have an adjustable-rate mortgage might experience their payments increase.
