The Bank of Canada has increased their benchmark rate 3 times since July 2017! Today, it sits at 1.25%. This rate usually affects the bank prime rate, which influences the rate that lenders charge for mortgages and other consumer debt. The next Bank of Canada meeting is set for March 7, and there’s talk of yet another rate hike.
Positive economic news regarding the Canadian economy could be one of the factors behind the increases.
- Unemployment is at its lowest level in 40 years
- Consumer spending higher
- Inflation has increased slightly to 2.1%
- The stock market is hitting record highs
The economy is moving along nicely. Personal debt, the main debt that concerns most of us however, isn’t doing quite as well.
Credit card debt, lines of credit, and other loans that usually carry a much higher interest rate than mortgage debt are also affected by rate increases. Paying less interest and reducing debt as quickly as possible is the best insurance protecting our financial health.
Our role as your mortgage professional is to not only help you buy your dream home with the Right Mortgage but to ensure that you don’t pay any more interest on your overall debt than you need to.
The first step is to establish where you stand today, then determine your options and strategy going forward. Phone or email us today.