Bank of Canada has once again raised the interest rate by .75%. This increase is a considerable raise once again. Rates went from 2.5% to 3.25%
This does not affect anyone in a fixed rate mortgage.
If you have an adjustable rate mortgage you will have an increase of $39 every $100,000 borrowed. If you have a static rate variable rate mortgage you may be getting close to your “trigger” rate which means you will be paying close to 100% interest on your mortgage. You may want to think about making an extra payment per month if this happens to keep paying down your principal you were a few months back.
This increase will impact anyone pre approved for a mortgage and a decrease of 8% of their previous maximum qualifying amount.
The market still continues to spur along as the difference in prices and interest rates still dramatically offset each other. Your payment may have gone up but you are purchasing homes $300,000 less then they were selling back in March/April of this year. There are some incredible deals out there! Even homes with mortgage helpers now selling close to $1,000,000 in Langley/ Surrey.
We are here for you all for any questions you may have. With over 80+ years of combined Real Estate experience we look forward to helping you with your Real Estate Needs!
Ty, Dan, Devin, Diane & Ngaire