Over the last decade, Canadians have seen some of the lowest interest rates in history. This has been a huge opportunity for first-time homebuyers since low rates make the cost of borrowing cheaper and buying a home easier (in some markets). There’s just one issue: with interest rates so low, they can only go up. When that happens, your monthly mortgage payments may increase. This has made buyers anxious, since rising interest rates may affect how much they can afford.
In addition, homeowners who have variable rate mortgages may also worry about how a potential rate hike will affect their mortgage payments. While rising interest rates are something to be aware of, there are ways you can navigate this within your mortgage. Let’s walk you through what you need to be aware of.
How do Bank of Canada interest rates affect mortgage rates?
First you need to understand how mortgage rates…