The Bank of Canada has increased it’s Overnight Rate by 0.25% to 1.5%. This will affect the variable rates and lower term mortgages. The longer term fixed-rate products, that are more affected by the Bond Markets, are still very steady.
With some good economic numbers in Canada and Internationally, the Bank of Canada was pressed to increase rates. However, it looks like they will be very cautious of any further rate hikes. Trade wars are of the greatest concern with speculation that our exports and imports will shrink substantially, negatively impacting our economy. At the same time household spending will represent a smaller share of overall growth due to higher interest rates and stricter mortgage rules.
If you have any questions about the rate change contact your Team at The Mortgage Centre Kitchener Waterloo today! 519-743-4365