The Bank of Canada increased their overnight rate .

The Bank of Canada met today and increased their overnight rate by 0.25%.  We have recently been seeing increases in fixed rates and now variable rates will also be getting a hike. 

It is anticipated that we will see further increases this year as recent months have shown employment growth, gross domestic product gains and increased cost of living.  If we were to see 3 more increases from the Bank of Canada at 0.25% each, which is a distinct possibility in 2018, for a $300,000 mortgage over a 25 year amortization, the rate jumps would increase monthly payments by about $120 per month.   

But don’t panic, variable rate mortgage holders do tend to spend less on interest over the life of their mortgage compared to those taking 5 year fixed products.  So if you can handle the roller coaster, there may be still savings to be had. 

Check out this article for details:

http://www.cbc.ca/news/business/bank-of-canada-rate-decision-1.4490918

Over the last several months, as interest rates have risen, we have saved numerous clients thousands of dollars in interest costs by finding the best solutions to minimize the effect of these rising rates.

Call me today and see if there's a way for you to save as well.  Reach me directly at: 604.354.4743  or  email me at:  info@nitisharora.com for no cost advice.

If you'd like to read more about the Bank of Canada's decision to again increase the rates, please click here for the full press release.

Nitish Arora - Mortgage Consultant