NEWS

On Wednesday, June 1, 2022 the Bank of Canada, as expected, raised the Benchmark Interest Rate another 50 Bps to make it 1.50%. Canada's central bank also signalled that this rate increase is not the end.

The Bank of Canada continues to deliver these increases in order to fight, what some economists are saying, out of control inflation. Inflation hit 6.8% in April which is twice the level the central bank likes to see.

What does this mean for Canadian Consumers? Simple, it makes borrowing money more expensive as it pushes the consumer lending rates up further, including mortgage rates. It will trigger variable rate lending products, such as mortgages, to increase. Variable Rate Lending Products are generally based on Prime so when Bank Prime Rates increase, so will your variable lending products.

Is it time to convert your Variable Mortgage to a Fixed Mortgage?