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As you may have heard, the Bank of Canada announced its last increase in 2022. Please do not panic when you turn on the news and hear this. Here is what you need to know below.

What is the increase?:
+ 0.50%

Clients with a fixed rate:
This announcement does not affect you.

Clients with an Adjustable Rate Mortgage:
Your payment will change on your next statement (approx. $31/month for every 100k of mortgage.)

Typically they apply the increase at the start of the following month (so in this case you will not see a change until January). For most clients, it is still not suggested that locking in to a fixed rate is going to save you more money than just riding out your ARM/Variable.

Variable rate (static) mortgage:
Your payment is static (you will see no change to payment). There is a chance you will be hitting your Trigger Rate if you have not made a manual change to your payment since rates have increased. It is VERY important you reach out to your bank/broker. 

Clients with a home equity line of credit:
You will see an increase in rate right away. If you are carrying a large HELOC balance it may be worth it to refinance or restructure it to save you money in interest. 

If you are pre-approved to buy a home:
Connect with your bank/broker to get an update on your scenario. If you need a preapproval please let me know and I’ll connect you with someone who can assist. 

For everyone:
Please try to remember we are in a very unique economic environment. Unfortunately, the costs of everything have been on the rise (gas, groceries, wages, etc) and mortgages are not an exception. All these things are cyclical though and there are some indications that we are nearing the top of the cycle. 

If you are nervous, want to discuss your options, or just to ask questions about what this means for you please reach out. I’m here to support you throughout your journey as a homeowner, through thick and thin.