As the Bank of Canada raises rates, some homeowners will see their monthly payments affected
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The Bank of Canada has raised interest rates by 2.25 per cent since March. While many homeowners expected rates to rise, no one expected things to go up so quickly.
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These increases have a major impact on variable-rate mortgage holders since their lender’s prime rate will often increase in step with the central bank’s rate. That means variable-rate mortgage holders with a fixed payment will see the interest portion of their payments increase. For those on a fixed-rate mortgage, nothing changes since you would have locked in your interest…
