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Effect of a variable rate hike

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Speculation is that the Bank of Canada is planning at least two rate hikes this year of .25% each. Here's an example that shows approximately how much monthly payments would increase on a typical variable rate mortgage with a .50 % point rate hike. It's based on the current average variable rate of 2.3%, amortized over 30 years. On a $100,000 mortgage, payment will increase approx $26 On a $200,000 mortgage, payment will increase approx $52 On a $300,000 mortgage, payment will increase approx $77 On a $400,000 mortgage, payment will increase approx $103 Some lenders offer a "hold your payment" feature to keep your variable rate mortgage payment from increasing if rates rise. However, the portion of your payments going to interest will increase, therefore decreasing the amount you pay towards principle.
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