Karelyn Campbell

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Bank of Canada Rate Increase

The Bank of Canada has raised it's benchmark interest rate by 50 basis points to 3.75%.

This is the sixth increase to the benchmark rate since March of this year as they aim to reign in inflation. The next Bank of Canada rate decision is expected on December 7 and a statement from the bank makes it clear that rates "will need to rise further", although it's anticipated that the size of the increases will be smaller.

What does this mean for homeowners and homebuyers?

Homeowners on a variable rate may be nearing or at their trigger rate - the level at which their monthly payment will no longer cover the interest.

While the cost of borrowing remains high, homebuyers may rejoice as falling home prices may allow young people priced out of the market to realize their dreams of homeownership once the market settles.

Want to take a closer look at your specific situation? Send me a message and let's chat!
 
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