Date Posted: July 12, 2018
With the increase to the Bank of Canada’s interest rate yesterday to 1.5%, the cost of variable rate mortgages will also increase.
The decision prompted an increase to the prime rate, which is the rate that variable rate mortgages and lines of credit are calculated on, to 3.70% up from 3.45%. On a $300,000 mortgage, that would mean an increase to the monthly payment by just under $40. The move to increase the rates does have a positive effect on those with money in savings accounts and guaranteed investment certificates.