As the Bank of Canada raises rates, some homeowners will see their monthly payments affected
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.
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…