We are recovering from an economic crisis, as we were in 2008. The issues we are experiencing are similar. With supply chain demands, the price of oil, and a war between countries, it was only a matter of time before inflation became a dominant factor for an increase in interest rates.

As inflation continues to rise, the Bank of Canada (BoC) aims to get control by affecting the overnight market rate, otherwise known as the Policy Interest Rate. If the economy is growing too fast, it could lead to a rise in inflation. Unfortunately, the high inflation we are currently seeing is not from a rapidly growing economy. Today, inflation results from supply chain disruptions and pandemic uncertainty. High Inflation is causing an increase in the policy rate. Higher interest rates tend to discourage borrowing, reduce spending and slow down the economy. A reduction in spending tends to put the brakes on inflation.

The BoC has a fine line when it comes to creating balance. How much rate increase will be the correct amount?

When it comes to deciding what is suitable for yourself and your family, finances are a factor to consider. There are a lot of rumours about mortgage interest rates so it is best to talk to your mortgage advisor when seeking advice. 

Do you have concerns about the affordability of your current housing plan?

I offer free, no-obligation mortgage checkups. 

Come work with a qualified and knowledgeable broker so that you can have an enjoyable and stress-free home buying experience.