As widely expected, the Bank of Canada (BoC) raise its key interest rate on Wednesday. It was the fourth hike for Canada’s central bank since July of last year, a move that brought rates to 1.5 per cent, up from just 0.5 per cent 12 months ago.
Most Canadians probably know the drill by now. As the BoC rate goes up, so does the interest on floating-rate loans, like variable-rate loans and lines of credit. And usually, a couple of days after the BoC’s announcement, the banks announce that they’re raising the interest on new fixed-rate mortgages as well.
It may be time to choose variable again Variable-rate mortgages are once again looking pretty attractive, according to mortgage brokers.
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Tibor Bogdan & Associates
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