The Bank of Canada today (July 12, 2017) raised the interest rate on overnight lending for the first time in 7 years. Many people are wondering, what does this mean for my variable rate mortgage?
There are a few things to consider when you're looking at your mortgage and a rising interest rate:
- For every $100,000 dollars of your mortgage, with a 25-year amortization, your monthly payments could increase by less than $25/month.
- You originally qualified for your mortgage at a higher interest rate, and you were approved because your financial situation would allow you to make increased payments if required.
- Variable mortgage rates are still among the best available right now, lower than many of the fixed rate solutions.
Of course, you always need to consider your unique situation and circumstances when deciding about how to move forward with your mortgage. Our team of experienced planners can present your options and find the best fit for you. Contact us today to set up an appointment: call Toll-Free 1-855-590-6520 or visit us at 307 Goldstream Avenue during regular business hours, Monday through Friday 8:30 a.m. – 5:00 p.m. We can also arrange an appointment evenings or weekends to work with you.
Auxilium Mortgage Corporation is based in Victoria, BC and works with clients locally and across Canada. The Auxilium team has over 100 years of combined financial experience and access to dozens of lenders to help you meet your goals.