Good morning everybody! Today feels like a great day for a rate change, doesn't it? (Hint: if you answered yes, you'd be right...)

This morning the Bank of Canada announced a 0.25% increase to their overnight rate, and correspondingly their Prime Rate. We will see other banks and lenders across the country follow suit in the next 24-48 hours to match. This rate increase only impacts variable rate customers, and may mean a change to your payment. While a .25% increase isn't going to drastically change your mortgage payment, if you're feeling nervous about the increase or considering a switch to a fixed rate, give me a call. It's important to consider all the angles before making a big change like this. 

FYI, I've attached the latest FAQ from one of our lenders, regarding their variable rate mortgages. This is true of most lenders, although there are some who will not change your payment. If you are in that type of product, it's still important to know that rates have gone up, because now less of your payment will be going to principal. This may be a good opportunity to consider increasing your payment by choice, to keep up with rates.

EXISTING ADJUSTABLE RATE MORTGAGES

Will my payment amount change?

Yes, your client’s payment amount will change. Please contact Customer Service (or your Mortgage Broker). 

When will my payment change?

Every client will have a different situation based on their payment frequency.

Will I be notified of the payment change?

Yes, payments will be adjusted automatically and notification will be sent thereafter.