Bank of Canada Rate Announcement
June 7, 2023
In a recent decision, the Bank of Canada announced a 0.25% increase in interest rates, resulting in a corresponding rise in the prime rate. This development holds significant implications for clients with variable rate mortgages.
Contrary to earlier predictions of a potential rate decrease, the decision to raise rates has been influenced by several factors. Notably, the country’s Gross Domestic Product (GDP) has experienced growth, Consumer Price Index (CPI) inflation is on the rise, labor participation rates have increased, and there has been a surge in housing market activity and overall spending. In order to maintain inflation at a manageable level of 2%, the government has taken this step.
Given this news, it becomes crucial for those with mortgages maturing in the coming months or those considering a new purchase to take action. If you currently hold a variable rate mortgage and have concerns about the impact of these changes, we encourage you to reach out to us. Our team can explore the available options and help you navigate the situation effectively, as there is a possibility of another rate increase in July.
We understand the importance of your financial well-being, and we are here to assist you during this time of change. Please don’t hesitate to contact us, and we will provide you with the guidance and support you need.