What the Bank of Canada’s rate hold means for mortgage owners
BNN Bloomberg
A pause in the Bank of Canada’s monetary tightening campaign may bring relief to many mortgage owners, experts told BNNBloomberg.ca while noting that other indebted Canadians will continue to feel the weight of higher borrowing costs.
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.
