This millennial making $110,000 helps her family with mortgage, groceries. Is it time to buy a place with her boyfriend? + MORE May 16th
All of this might seem terrifying. But let me assure you: there’s no need to panic.
How Does This Affect Me?
If you’re looking to secure a fixed-rate mortgage, you can take a deep breath. The rate hike announced yesterday won’t directly affect you. Why? Because fixed rates are based on Canada’s 5-year government bond yields. Those are currently sitting at 2.53% and have not changed with this latest Bank of Canada rate hike.
In fact, I don’t expect fixed-rate mortgages to move much at all over the next 12-18 months. Those rates already increased over the last five months in anticipation of rising rates, so investors have built in the rate hikes already…