Bank of Canada Announced Another Rate Increase Today
Is this the beginning of the end of the Bank of Canada’s rate hikes? Today the Bank of Canada announced yet another increase of 0.25%, their 8th consecutive rate increase. That means the Banks Prime rate has increased from 6.45% to 6.70%, most of them anyway. This increase for the average mortgage in Alberta of $340,000 represents an increase of approximately $50 per month on your monthly mortgage payments. We are now sitting at the highest Prime Rate we have had since 2007. It was right around then that Prime rate had peaked and eventually made a gradual decrease, I am hoping we will see something simliar.
That said, it is speculated that there will be a pause on future increases for the time being so we can see the impact these increases have had on inflation.
If you are currently in a fixed rate mortgage, you won’t be affected by these increases. If you are in a variable, you will see your payments adjusted or the amount paid to interest increased.
Please feel free to contact me with any questions or for advice with respect to mortgages, mortgage rates and so on. I am always happy to listen.
The Next Bank of Canada Meeting is scheduled for March 8, 2023.