Well the inflation numbers for March 2022 just came out this morning and we are now at 6.7% ( up from 5.7 for February) or the highest rate since January of 1991. All the categories that Statistics Canada tracks from food, energy, shelter and transportation were all up. The largest increase is the 11.2% increase in transportation due to the rapid increase of the price of oil. Which is up 39.8% year over year, and now mostly due to the Russian invasion of Ukraine.
It’s this increased transportation costs that are pulling up the cost of food, durable goods and plane tickets. Economists are predicting that the inflation rate will remain higher than the Bank of Canada’s target range of 1-3% till 2023. Lowering your purchasing power as interest rates rise to try to offset the inflation rate.
If you are on a variable rate you can either sit tight and ride it out or pay slightly more and convert it over to a fixed rate.
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 (2021-3000179) Broker (2021-3000180), Ontario(M18001555) & in British Columbia(BCFSA #504098).
p.s.s.s You can download my new mortgage app here