Bank of Canada Raises Key Interest Rate 25 Basis Points
As expected the Bank of Canada has raised the interest rate by .25%. This is the result of the ongoing battle to reduce inflation in Canadian marketplace and help stabilize the economy. On a positive note, the Inflation rate has declined from 8.1% in June 2022 to 6.3% in December 2022. Inflation is projected to come down significantly this year to around 3.0% in the middle of 2023 and back to the normal 2% target in 2024.
What Does This Mean For Mortgage Rates:
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The overnight rate is now at 4.5%
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Prime Rate has increased from 6.45% to 6.7%
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New Variable Rate mortgages have increased by 0.25% and are now 6.4%
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Home Equity Lines of Credit (HELOC’s) will increase by 0.25% (Prime + 0.5% = 7.2%)
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Fixed rates have not moved (currently ranging from 5.25% - 5.75%).
Stay tuned for the next Bank of Canada rate announcement planned for March 8, 2023.
Need help with securing a pre-approval? Get in touch with one of our preferred Mortgage Brokers.
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