Interest Rate Hike for 3rd Time Since Last Summer

Wednesday Jan 17th, 2018

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The Bank of Canada raised its key interest rates to 1.25%. The bank’s rate has an impact on rates that Canadians get from retail banks for things like mortgages, saving accounts and GICs. The bank of Canada now expects Canada’s economy to grow by 2.2% this year and 1.6% in 2019. Previously the bank’s expectations were 2.1% and 1.5% growth for next year 2019.

What does this mean for a homeowner today with a $300,000 mortgage and 25-years Amortization.

$300,000

25 yrs Amortization

$1,419.74 Monthly Payment

$1,537.67 New Monthly Payment

$100 Extra A Month