The Bank of Canada’s effort to cool the housing market by hiking interest rates has house hunters and home owners alike re-examining what kind of mortgage they can take on.
Global News spoke to mortgage experts and economists to help break down the factors consumers should be considering as they crunch the numbers on monthly housing payments in the midst of a rising interest rate environment.
How are mortgage rates determined?
First things first, know the different kinds of mortgages available to you.
A fixed-rate mortgage offers homebuyers a steady interest rate for a set term, usually set in three-to-five year increments over the length of the mortgage.
These rates aren’t immediately affected by the Bank of Canada’s interest rate moves — even if expected hikes can be baked into the…
