This morning, the Bank of Canada (BoC) raised its policy rate another .25% bringing the rate to 1.5%, to keep inflation under wraps, while acknowledging future hikes will be gradual because of the recent trade upheaval. This is the fourth such increase in 12 months.
Payments linked to Prime on variable-rate mortgages and lines of credit are likely to rise immediately.
If you have questions about how this change will impact you and your mortgage, please contact me to review your personal situation.
With inflation already above the central bank’s 2% target and potentially heading higher, Bank of Canada Governor Stephen Poloz wants to keep wage and price pressures in check. Recent data also suggests housing markets are beginning to stabilize following a weak start to 2018.
As always, I will continue to watch the market and report any impact it will have on you and your mortgage.
If you have any question, feel free to contact me.