The increase will affect the cost of borrowing on floating-rate loans, including variable-rate mortgages, and lines of credit. This means that variable interest rates on consumer loans will go up immediately, which will increase overall household costs.
Canada’s economy generated an impressive 420,000 job last year. Wages are starting to creep up and companies are busy. All this suggests an economy that’s well-positioned for higher borrowing costs.
As always, I will watch the market and monitor any impact it will have on your mortgage. It may be a good time to discuss your options, especially if you’re in a variable-rate mortgage.
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