Sasi Mache - TMG Mortgages

12/18/2024

12/31/2022

Wishing everyone a happy, healthy and prosperous 2023!

10/26/2022

The Bank of Canada today increased its target for the overnight rate to 3¾%, with the Bank Rate at 4% and the deposit rate at 3¾%.

10/26/2022

Bank of Canada Raises
Rate by 50 bps


The Bank of Canada raised its key lending rate by 50 basis points this morning, bringing it to 3.75%.

In its statement, the Bank said interest rates will need to rise further to control inflation, but that future increases, “will be influenced by our assessments of how tighter monetary policy is working to slow demand, how supply challenges are resolving, and how inflation and inflation expectations are responding.”

What happens now?

In the coming days, banks and other financial institutions are expected to follow the Bank of Canada’s lead and hike their prime lending rate, which is used to price variable-rate mortgages and personal and home equity lines of credit (HELOCs).

This announcement will have no impact on fixed-rate mortgage holders.

This is the sixth consecutive rate increase from the Bank of Canada, which has now increased the overnight target rate by 350 basis points since March. If you have any concerns about this rise in borrowing costs, I encourage you to reach out so we can discuss your personal situation and options.