Bank of Canada Raises Rates

July 10, 2007 by First Foundation

As expected, the Bank of Canada raised it's overnight interest rate this morning by .25%.  This affects mortgage holders that have Home Equity Lines of Credit (HELOCs) or Variable or Adjustable Rate Mortgages.  Those rates will also go up by a corresponding .25%.  The typical bank Prime rates have gone from 6% to 6.25%.

As we mentioned in a previous article, this may have an impact on your payments, but thankfully, not a large one....

Follow the "Read More" link for more information

This table gives you an idea of what a .25% increase will mean to you.

With further variable rate increases expected in the fall, maybe it's time to consider a change from a Variable or Adjustable rate mortgage to a nice fixed-rate mortgage that is guaranteed not to change for 5, 7, or even 10 years!  They can be a great way to save money in a rising rate environment and a good secure way to know exactly what your payments will be.  Give us a call if you would like to explore those options.

An article with further analysis of this can be found here.