Mortgage Blog
Start Your New Life In Your New Home
Bank Of Canada About To Break The Internet
October 22, 2022 | Posted by: Dallas Martin
Bank Of Canada About To Break The Internet
It appears the Bank of Canada will increase interest rates by .50bps on October 26th. We've been expecting this, and it's important to consider what this could mean for our clients.
When interest rates rise, the cost of borrowing will increase, leading to a slowdown in economic growth and housing values decreasing. This can be highly problematic for some of our clients, especially those who have taken out variable-rate mortgages or HELOC products.
Variable-rate mortgages have become increasingly popular in recent years, but with rising interest rates, some homeowners are feeling the pinch.
However, there are things our clients can do to help weather the storm. For those with variable-rate products, staying on top of your payments and ensuring you have enough funds to cover the increased payments is essential. Make sure to budget carefully and cut back on other expenses to make room for the possibility of higher mortgage payments. It may also be worth considering locking in your rate if you think interest rates will continue to increase. By taking these steps, you can protect yourself from the potential cost of rising interest rates.
If you're considering locking in your interest rate, it's worth thinking about the long-term implications. Locking in your interest rate could save you money in the long run, but it could also tie you into a higher rate if rates go down and a higher penalty to break.
Weighing the pros and cons of locking in your interest rate is an important decision that can have costly impacts. Please feel free to contact me if you are thinking about locking in your rate.
