The Bank of Canada has stopped promising to keep interest reates rock bottom. In fact, most financial institutions have already started to jack them up. The posted rate for banks is about 6.25%* which is up from March when it was 5.25%.
Are your ready for it?
The CMHC studied current home owners and found that, yes, the majority are comfortable with their mortgage debt load and are confident that things are going to stay that way. According to an Investor’s Group report, forty-one percent of Canadians said that their financial security could withstand a three percent increase in mortgage interest rates.
“A three percent increase in mortgage rates…implies mortgage payments for these borrowers could increase an average of $444 per month for an mortgage of $254,514.
Can your budget handle it?
* You should not that you can negotiate a better interest rate at most institutions, depending on a number of factors.