I’m sure you’ve heard that interest Rates are increasing in Canada…so what does this mean for you? This week we will share what you need to know about how interest rate hikes will affect the Saskatoon Real Estate Market.
This week, for the first time since 2018, the Bank of Canada raised its key lending rate by 25 basis points to try to control the growing rate of inflation.
You may be wondering what this means to you?
In the coming days, banks and other financial institutions will likely increase their prime lending rate. RBC and TD Bank already hiked their prime rates to 2.7% from 2.45% effective March 3.
Variable Rate Mortgage
If you currently have a variable-rate mortgage, you will start to see your rates increase with a slightly higher monthly payment.
Fixed Variable Rate Mortgage
If you have a fixed variable-mortgage payment, more of your payment will go towards interest rather than towards the principal.
Fixed Rate Mortgage
If you are currently locked into a fixed-rate mortgage you won’t see any change to your monthly payments until you go to renew your mortgage at the end of your term.
If you're a new buyer looking to get a new mortgage, you shouldn’t worry too much at this point. Your buying power is still likely strong even with the rate increases, and interest rates are still lower than they were pre-pandemic. The increase you might see in your monthly payment is still relatively small. For example, the average $500,000 mortgage holder will only pay an extra $58 per month moas a result of the latest hike.
As always, if you have any questions about the real estate market, feel free to get in touch with us.
Tait Real Estate - Realty Executives Saskatoon
Jamie Tait - 306.203.0004 - firstname.lastname@example.org
Ross Tait - 306.230.2338 - email@example.com