As you know, your variable rate mortgage, line of credit and/or student loans are all based on the Prime Rate and here is your personal update from me on the recent Bank of Canada
announcement. The Bank of Canada has increased their Overnight Rate by 0.25%. When this happens, it typically means that your Prime Rate is going to increase as well but not
always by the same amount.
The Bank of Canada announced today that the overnight lending rate is now 1%. Here is a great article by CTV that explains why the Bank of Canada has raised their rate again. Basically, the Governing Council felt that the stronger than expected economic performance warrants this increase.
Most lenders will increase their prime rate by 0.25% as well, so prime will most likely increase to 3.2%. Should this happen, this increase affects variable rate mortgages, lines of credit, student loans and any variable rate credit cards or loans.
Let’s review the math and your situation together so you can make an educated decision about what is right for you! As your mortgage broker I can give you impartial advice on what the impact of a potential increase in interest rates means for you and your situation.
Give me a call or send me an email and we can talk about how this may impact your short and long term plans.
Mortgage Broker | #M11001703
Toll Free: 1.888.955.9011
Locations: 42 Ontario St, Grimsby, ON. L3M 3H1 | 300-1100 Burloak Dr, Burlington, ON. L7L 6B2