What mortgage owners need to know about the Bank of Canada's rate hike
BNN Bloomberg
Following the Bank of Canada’s latest interest rate hike, experts say Canadian mortgage owners will feel the impact of higher borrowing costs, either in the form of higher monthly payments, extended amortizations or at renewal.
On Wednesday, Canada’s central bank increased its policy rate by 25 basis points to 5.00 per cent. The move followed another previous 25 basis point increase in June and brings interest rates to the highest level in 22 years.
“This is a pretty substantial moment in time,” Leah Zlatkin, a mortgage broker and expert with LowestRates.ca, said in an interview with BNNBloomberg.ca Wednesday. She said this is the first time the nation has seen a Bank of Canada policy rate at five per cent since 2001.
Zlatkin said the Bank of Canada’s decision to raise rates by 25 basis points will increase borrowing costs by roughly $18 per month for each $100,000 borrowed.
