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Bank of Canada Rate increase

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The Bank of Canada raised their Target Overnight Rate yet again today, by .25%. This rate directly affects the bank's prime lending rate. In turn, Prime Rate for most banks has increased to 3.2%. This rate will be applied to all variable rate mortgages as well as secured lines of credit. Here is their press release.

Most lenders have also started to post modest increases to their fixed rates.  

Furthermore, some banks have started to increase their 5 year posted rates to 4.89%. If the remaining ones follow suit, we will likely see an increase to the Bank of Canada's Qualifying Rate over the coming weeks. I will keep you posted on this as it will impact any pre-approvals.

As of now, I can still do insured pre-approvals for the 5 year fixed between 2.89-2.99% however these rates won't last.

Let me know if you have any questions or concerns.

www.christinebuemann.ca

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