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Interest Rate Announcement – July 13, 2022

July 13, 2022

A bit of a surprise with the 1% increase today. Most people were expecting a 0.75% increase from the Bank of Canada. In four months, the prime rate has gone up 2.25% and they may continue to do so later this year. This move is in response to rising inflation numbers, which have remained high due to a near full employment capacity. This economic situation is not a surprise given the government’s control of interest rates and use of fiscal stimulus over the course of the pandemic. 

Flashback to 2 years ago when they told us this and here we are now…

Regardless of the reasoning, this does impact all variable rate mortgage holders and will also impact fixed rate holders when they come due for maturity. Things can always change, but it’s best to sit down with a respected independent mortgage advisor to go through all your options that are available to you during this time.