Well the Bank of Canada met this morning for the last time this year and hiked the overnight interest rate by 50 basis points or a half a percentage point. This means that those with variable rate mortgages and home equity lines of credit will have to pay more to service the debt.
This is as a result of our staggering high inflation rate which is currently sitting at 6.9%. Although it has come down in recent months from the high of 8.1% back in June, it is not coming down fast enough or far enough. The rate hike is the banks way of wants Canadian’s to drastically cut back on our spending so that the inflation rate will come down more quickly to it’s 2% target.
So while inflation has made everything from food to fuel more expensive, now the bank of Canada is making the costs of servicing our debts even more so. Cutting back on unnecessary expenses may be the only way forward to get us out of this high inflationary environment.
Today I am thankful for the feeling of muscle soreness from my workout yesterday, that this may be the last of a long series of rate increases and that the best food in the city is made in my own kitchen.
I look forward to hearing from you in regard to your mortgage needs.
p.s.s- I should tell you that I am licensed in Nova Scotia Brokerage (2022-3000179) Broker (2022-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here