What mortgage owners need to know about the latest Bank of Canada rate hold
BNN Bloomberg
Even after the Bank of Canada elected to pause its monetary tightening campaign, one expert said higher borrowing costs will continue to weigh on some Canadians with mortgages or other forms of debt.
On Wednesday, the Bank of Canada held its policy rate at a 22-year high of five per cent. Canada’s central bank has raised interest rates by 475 basis points since March 2022.
Alana Riley, the head of mortgage, insurance and banking at IG Wealth Management, said prime rates are expected to remain at 7.2 per cent following the central bank’s decision.
Since the Bank of Canada has raised rates 10 times since March 2022, she said “the market impact of these changes in aggregate become material,” and will weigh on many borrowers even with the rate hold.
