As many economists expected, the Bank of Canada announced today that it is increasing the overnight rate .25 per cent, noting that the "policy interest rate will need to rise to a neutral stance to achieve the inflation target." As for the pace of future rate increases, the Bank will take into account how the economy is adjusting to higher rates, household debt levels, and global trade policy developments. The next rate-setting day is Wednesday, December 5th.
Homeowners with variable-rate mortgages will see their rate increase along with a possible modest payment increase. Lines of credit will be similarly affected.
Make sure you have confidence in your mortgage plan. It's very important to work with an experienced professional who knows the right questions to ask to assess your situation and provide the direction you need to save money over the long term. You'll also save yourself a lot of time and stress!
Source: Invis Financial