SEPTEMBER’S INCREASE Bank of Canada Raises Rates With a Target Rate of 3.25% In September the Bank of Canada (BoC) announced they were raising rates by 75 basis points, from 2.5% to 3.25%. The BoC continues to target inflation, and forecasts rates would need to rise further to get inflation to the Bank’s target of 2%. Rate Forecast Given the BoC’s history throughout Q1 – Q3 of ’22 and their bullish statements, you should expect further rate hikes in ’22 and ’23. Variable–Rate Mortgages If you have a variable rate mortgage or a home equity line of credit (HELOC), expect your rates and payments to rise accordingly, and budget for more rate hikes over the next 12 months. Fixed–Rate Mortgages If you have a fixed–rate mortgage, you won’t see a change in your monthly payment until your mortgage is up for renewal, make sure you are budgeting for higher payments. What You Need To Know We’re recommending that you buy sooner rather than later. Alongside increasing rates comes increase in demand across the housing market, and you’re probably better off if you can buy in ’22 rather than ’23. Get in touch with our team today to discuss your options and get your game plan on before rates increase again!
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