Bank of Canada Rate Increases Overnight rate by .25%... What This Means For You.
News for you... In case you haven't heard already, the Bank of Canada increased their overnight rate by .25% earlier today (up to .75%). The BoC's overnight lending rate is the primary influencer for every major lender's prime interest rate which is what your variable mortgage rate is based on. Each lender will make their own decision on increasing their prime lending rate but, most likely all of them (including yours) will increase their prime rate congruently with the BoC's rate a.k.a. your rate will most likely go up .25%. At this point or at any point in your mortgage term, you have the option to opt for a fixed interest rate if you no longer wish to continue with a variable rate mortgage. Your fixed rate option will be based on either a new 5 year term or a term that is at least as long as the time remaining on your current term/agreement (3.5 years left = min. 4 year new term). This will depend on your lender and the interest rates available to 'lock