July 13, the Bank of Canada raised the interest rates by 100 basis points. This 1% raise is the biggest one-time increase since 1998. It was higher than anticipated and this impacts lending rates as well as cost for lines of credit.
A 1% increase to the prime rate will drive up your monthly payment. However, if you have a fixed rate mortgage, there is no change in your mortgage payment until renewal.
As borrowing costs increase, the housing market will continue to cool and shift to a more balanced market. Strategy changes are needed and necessary.
This week we chat with Senior Partner of Elite Lending, Jeffrey Ho we talked about how interest rates have increased in 2022, how it affects your borrowing and buying power, the history of rate hikes and if you should wait it out or if there are opportunities in the market.
Understandably, this is a stressful time for our buyers and sellers. We are here to help you navigate these changing times, do not hesitate to reach out directly with any questions.
It is more important than ever to work with an experienced real estate team with previous experience in dealing with the cooling market.
If you have any questions about real estate or mortgages, we’re here to help!
Jeffrey Ho, Mortgage Broker & Senior Partner at Elite Lending
- 236-867-7686
- Jeffrey.Ho@elitelending.ca
Steven Ho, Real estate Professional Team Leader at Mister Sauga Real Estate
- 📲 647-504-0690
- 📧 steven@mistersauga.ca