First Time HomebuyersNovember 15, 2022
Prepayment PenaltiesDecember 11, 2022
The Bank of Canada Rate Hikes…we all knew it was coming…ughh…when will it stop?
Many individuals with a variable rate mortgage, where the payment is fixed, may experience their trigger rate being hit.� The trigger rate is hit�when a mortgage owner’s regular payment no longer covers the interest accrued since the previous payment.
The lender will then increase their payment to at least cover the interest due and in some cases, depending on the lender’s policy, they might raise the payment even more.
�Looking ahead, Governing council will be considering whether the policy interest rate needs to rise further to bring supply and demand back into balance and return inflation to target,� the Bank of Canada statement read.� This may mark a departure from the central bank�s language following recent hikes, where it said outright that �rates will need to rise further.� Furthermore, they are resolute in their commitment to achieving the 2% inflation target and restoring price stability for Canadians.
The Bank of Canada now sits at it’s highest level since 2008.� Here is hoping these increases willl peak here and hold at this rate through 2023.
The central bank did signal in a statement accompanying the decision that a pause in the Bank of Canada rate hike could be coming soon.� We witnessed that on March 8th, 2023.
The next scheduled date for announcing the overnight rate target is on April 12, 2023.