The Bank of Canada increased its policy interest rate by 0.50% today, December 7th, 2022. This means that the Prime rate has increased to 6.45%.
What does this mean for you? With a variable or adjustable rate mortgage, Home Equity Line of Credit (HELOC), or personal line of credit, you may see an increase to your payments/the amount of interest you are paying once the banks follow with an increase to the prime lending rate. This works out to a monthly payment increase of $26 for every $100,000 in mortgage or line of credit.
I know this year has had its fair share of increases and I too have a variable-rate mortgage and have been affected by the increase in payments. I believe we finally have hit a peak to the increase in rates and the rates will eventually go back down, the question is when and by how much.
The Interest Rate Announcement dates for 2023 are as follows:
- January 25, 2023, Interest Rate Announcement & Monetary Policy Report
- March 8, 2023, Interest Rate Announcement
- April 12, 2023, Interest Rate Announcement & Monetary Policy Report
- June 7, 2023, Interest Rate Announcement
- July 12, 2023, Interest Rate Announcement & Monetary Policy Report
- September 6, 2023, Interest Rate Announcement
- October 25, 2023, Interest Rate Announcement & Monetary Policy Report
- December 6, 2023, Interest Rate Announcement
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