Update from the Bank of Canada this morning; The overnight rate has been raised by 0.25% to 1%.

This will impact borrowers with variable rate mortgages in one of two ways: it will either raise your monthly mortgage payment or lengthen your amortization period (taking you longer to pay down your mortgage).

If you think it’s time to lock in, if you’re in a variable, call me and I’ll walk you through it.

This will also impact anyone who’s currently shopping without a rate-hold in place. Typically, after a Bank of Canada rate increase, Canadian lenders will bump up their “Prime Rate” (right now it’s at 2.95%, within the next 2-3 days we’ll likely see this rise to 3.15%.)

This WILL NOT affect anyone with a fixed rate mortgage! If you’re already set in a nice, low rate – hang on to it!

Reasons you need to call me right now:

  1. If you’d like to talk about locking in your rate, or if you’d like a second set of eyes on your current borrowing strategy, let’s talk.
  2. If you’re shopping for a new home, I can get you locked in at the best rate possible for a 120 day rate-hold.
  3. If you’re up for renewal on your existing mortgage within the next 6 months – 1 year, let’s look at your options and see if I can save you money NOW.

Rates are increasing because it’s believed that our economy is strengthening and the dollar is rising. There will be another Bank of Canada announcement on October 25, 2017.

Thanks and keep me in mind for all of your mortgage and real estate financing needs.

Rebecca Casey

Xeva Mortgage

604.833.8938

[email protected]