Canada’s latest mortgage rate hike should not impact Canadians’ ability or desire to refinance or renew their mortgages, experts argue.
On Wednesday, the Bank of Canada raised its key interest rate to one per cent, the highest rate increase in more than 20 years, with a warning that further rate increases could be on the horizon.
Allison VanRooijen, vice president of consumer credit at Meridian, said Canadians have experienced an extended period of low interest rates, meaning this rise may be new territory for many mortgage holders.
“This will be a new era for that group and an area we’ll be keeping a close eye on,” she said in a recent phone interview with CTVNews.ca.
“Those borrowers coming up for renewal, maybe in the next two or three years, we’ll start to see their renewal rates come in a little bit higher than they’re used…
