Mortgage Blog

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Bank of Canada increases benchmark rate

January 17, 2018 | Posted by: City Mortgage Group

The Bank of Canada announced today that it is raising the overnight rate .25 per cent given a strong economy and despite the uncertainty surrounding NAFTA. The Bank noted that the Canadian and global economies continue to strengthen, but that NAFTA is a definite concern so they will be cautious about any future rate hikes. The next rate-setting day is Wednesday, March 7.

Homeowners with variable-rate mortgages will see their rate increase along with a possible modest payment increase. Lines of credit will be similarly affected. Get in touch if you have a variable-rate mortgage and have questions about your mortgage strategy and whether you should lock in or not. Or perhaps you need a new mortgage, are renewing, or are looking to refinance. If you have house shopping plans, be sure to get pre-approved now.

Given new rules that went into effect on January 1, it’s very important to work with an experienced professional who knows the right questions to ask to assess your situation and provide the direction you need to save money over the long term. Good advice early will save you a lot of time and stress!

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