Paul Trainor says on a $200,000 mortgage, homeowners with a variable interest rate could be paying about $83 a month more than they were at this time last year.
“The rising increase in mortgage rates is going to have a huge impact and people are going to have to change their lifestyle,” he said….
Highest since 2008
The bank’s rate is now set at 1.75 per cent. That’s the highest it’s been in almost a decade, dating back to December 2008.
Trainor said more rate increases are expected. He said people with variable rate mortgages or a working line of credit will feel the hit first.
On a $200,000 mortgage, for example, he said a homeowner was paying roughly $926 last year when the median interest rate was 2.8 per cent. With the new rate of 3.6 per cent, that same mortgage will cost $1,009 per month.
What’s important to note above all else is that the small rate increase is NOT affecting your payments as much as the media would like you to believe. Please connect with your trusted mortgage broker to learn about how it really affects you and your mortgage. We are advocates for you and will always guide you in the right direction.