Bank of Canada announces increase to the prime lending rate

I am just sending a quick note out to let you know about today’s announcement by the Bank of Canada to increase the prime lending rate. The increase is .25% and is applicable to variable and adjustable rate mortgages.

If you are one of the people on a fixed rate mortgage, then this will not affect you at this time. If you are on a variable rate, most lenders adjust the payment to reflect the interest rate change. A couple lenders will keep your payment the same but you will be paying less principal and more interest with each payment.

The rate change will have an indirect effect on current fixed interest rates, so if you plan on getting a fixed rate on an upcoming renewal or refinance, then now is a good time to let me know and we can lock a rate or approval in for you. I can do this with up to a 4 month hold, depending on the lender.

If you have any questions, write me at jeff@bc-mortgage-broker.ca or you can call me or text me on my cell phone at 604-318-1292. I hope you have had a good summer and look forward to hearing from you.