Financial
Topic
Bank of Canada raises its overnight rate to 0.50%, impacting variable rate mortgages, credit cards, and lines of credit. Learn how this affects your payments and get expert advice from DLC Mortgage Agent, Cam Wilson.
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:
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
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A note
Wilson Mortgage is proud to partner with Dominion Lending Centres, one of Canada’s most trusted mortgage networks. This partnership allows us to offer our clients a wide variety of mortgage solutions tailored to their unique needs. Whether you're looking for competitive rates, flexible terms, or specialized financing options, our access to Dominion Lending's extensive resources ensures that you receive the best possible service. Serving the Niagara Falls and St. Catharines area, we combine local expertise with the strength of a national network to help you achieve your home financing goals with confidence and ease.
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