BOC June Meeting

The Bank of Canada is widely expect to raise interest rates again this morning. If they come through with another 50 basis points increase, this will be the 3rd increase in a row, amounting to 125 basis points in increases this year.

Yes it is true that inflation is at 30 year highs, the cost of housing has increased dramatically recently and the price of oil is through the roof. However the increase to the over night lending rate which then increased the prime rate that we see as consumers just further increases our housing costs. All of this is supposed to cause consumers to spend less money as the costs of borrowing has increased.

There is only so much discretionary spending that we can cut back as the costs of everything has gone up recently from food, to gas and now higher borrowing costs for housing. All this is blamed on supply chain problems due to Covid shut downs and more recently the war in Ukraine.

One of the best ways to insulate yourself against any other further prices increases is to learn how to better manager your money. The single best program out there is called YNAB, which stands for You Need A Budget. Instead of X amount into the future for Y, you give ever dollar you make a job and budget only what you make.

As expect the Bank of Canada increased the over night lending rate by 50 basis points, thus increasing the prime rate to 3.70%. However those of us on a variable rate mortgage are still better off then those who have switched to a fixed.

I look forward to hearing from you in regard to your mortgage needs.

Patrick

p.s- You can click on this link to start the process whenever you are ready. Schedule your meeting with me here.

p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).

p.s.s.s You can download my new mortgage app here