The Bank of Canada has finally raised the interest rate. After years of speculation and no changes, a few weeks ago the BOC finally made the move, increasing the rate from 0.5% to 0.75%. Have you seen any impacts yet?
As we know, those clients with fixed-rate mortgages won’t feel an impact until they come to you to renew. However, those with adjustable-rate and variable-rate mortgages may already be feeling the impacts. The interest rate increase also means higher payments for those coming to you for mortgage products now.
What’s more important, however, is that many have speculated that a further increase is likely. According to Canadian Mortgage Trends, “Signals are pretty clear that the Bank of Canada isn’t through with its rate hikes just yet. Many economists expect the bank will raise rates again at its October meeting, with potentially more to follow in 2018.”
This means that encouraging your clients to lock in while the interest rate is still low is probably the right approach.
For more on the impacts of an increased rate, or how a prime increase is already being felt, check out the Canadian Mortgage Trends article here: https://www.canadianmortgagetrends.com/2017/07/prime-follows-boc-overnight-rate/.
For more on the interest rate hike itself, check out Teranet’s Commercial Solutions’ blog here: http://www.teranet.ca/blog/bank-of-canada-raises-interest-rate-with-more-to-come/.
At Purview For Mortgage Brokers, we can help you meet your clients’ needs, no matter the interest rate. Find out more by visiting www.purviewforbrokers.ca today.