Why are interest rates rising?
The Bank of Canada adjusts the prime rate to manage inflation rates. With Canada’s inflation rate higher than the target rate of 2%, the prime rate is increased as a defensive move. Mortgage interest rates fluctuate with the prime rate – higher prime rate, higher mortgage rates.
Frequently asked questions
Will interest rates continue to go up?
Interest rates are tied to the Bank of Canada’s prime rate. If inflation continues to increase, the Bank of Canada may hold the current rate or increase it.
I have a fixed interest rate, does the increase in interest rates affect me?
An increase in interest rates will only affect a fixed-rate mortgage at renewal. At renewal, a new term agreement, if offered, will have a new interest rate – this interest rate may be higher or lower than your current term.
I can’t afford my mortgage payment amount at renewal. What can I do?
If you are having financial difficulties, please contact us to discuss your options. We want to help.
Helpful Links
Housing costs on your mind? – Canada.ca
Managing your money in challenging times – Canada.ca
Contact
If you have questions or need help, contact us. We’re here to help.
Is your mortgage up to date, but you are nervous about your payments after renewal? Upon qualification, relief measures may be available to you.