This column is by Mark Ting, a partner with Foundation Wealth who helps clients reach their financial goals. He can be heard every Thursday at 4:50 p.m. on CBC radio as On the Coast’s guide to personal finance.
For the first time since 2018, the Bank of Canada has hiked the overnight interest rate to curb inflation and cool the real-estate market. With increasing interest rates many variable mortgage holders are considering switching to a fixed rate mortgage.
With the 0.25 per cent overnight rate hike, I am now paying 1.65 per cent for my variable mortgage. Assuming the Bank of Canada follows through with its plan to hike rates five more times over the next 12 months, my rate would still be under three per cent, which is lower than the current offer on a fixed rate mortgage.
Interest rates in the bond market, which are used to price fixed term mortgages, have been moving…
