Chief Economist of DLC, Dr. Sherry Cooper had suggested in January that we would not see a Bank of Canada rate increase until March or April.

She is correct, today the Bank of Canada raised their overnight rate from 0.25% to 0.50%. This rate change affects the following type of financial vehicles:

• Variable rate mortgages and loans
• Credit cards
• Lines of Credit

Please note the 0.25% increase changes a $400,000 variable mortgage with 25 years remaining on the amortization, accordingly:

Former Prime rate @ 2.45% with a 1% discount (client paying 1.45%):

$1,589.55 per month

New Prime rate @ 2.70% with a 1% discount (client paying 1.70%):

$1,636.46

We see an increase on the above example of $46.91 per month.

If you have any questions about the market and mortgages, please reach out!

800-969-0014 | crwilson@dominionlending.ca

Cam Wilson | Mortgage Agent

DLC Canuck Mortgage Group