When the overnight rate is increased, it becomes more expensive to borrow money. The increased costs of borrowing money are shifted from the bank onto the consumer by increasing the Prime Rate.
Pre-Approvals are likely to decrease.
Fixed-Rate Mortgages remain the same.
Adjustable Rate Mortgages will increase according to the new Prime Rate minus your discount. (Expect information in the mail).
Static Variable Mortgages payments remain the same but a portion of interest paid to the lender will change.
Reach out with your questions anytime. I can introduce you to a mortgage broker who would be happy to go over your options with you and help you find a mortgage that you're most comfortable with.
Dan Petersen
Re/Max Action Realty LTD.
(250) 262-7496
dan@remaxaction.ca
October 2022 - Bank of Canada Rate Announcement
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