Despite the Bank of Canada’s key overnight interest rate target holding steady at 0.25 per cent, the bank has signalled that interest rates are expected to rise, and soon.
An increase in the cost of borrowing will undoubtedly impact a number of homeowners, said Robert Hogue, a senior economist with the Royal Bank of Canada. He expects interest rates to rise gradually throughout the year and into 2023, he said, resulting in a cumulative impact on Canadian homeowners depending on the type of mortgage they have.
“The impact on the housing market itself will not be huge initially,” he told CTVNews.ca in a phone interview on Jan. 26. “The real impact will be the cumulative increase of those rate hikes, that’s ultimately what matters.”
According to Hogue, Canadians could see as many as four interest rate hikes this year, each comprising an additional 25…
