Here is Article 3 in a series focused on Variable vs. Fixed Rate Mortgages (in Canada). Please note that if you're concerned or have questions about your mortgage, I highly recommend to reach out to your designated and trusted Financial Advisor. My best recommendation is to not turn to family and friends when it comes to trusted mortgage advice. I say this because I have seen well-meaning family and friends give very ill-suited advice when it comes to client's mortgages. Your trusted advisor has the experience, certifications, professionalism and tools to help best have a in-depth conversation with you about your homeownership goals and can best advise you with information on your unique mortgage needs.
By the time this article is published, there will be 5 days remaining until the Bank of Canada is scheduled to have their next Meeting / Rate Announcement (Wednesday, October 26, 2022). It is important to engage your Financial Advisor if your homeownership goals have changed, you have concerns, or you have any lingering questions you need addressed when it comes to your mortgage and your home.
Here is my view on what I think will happen at the Wednesday, October 26, 2022 Bank of Canada Meeting. I see and feel that we still do not have a grasp on inflation and in an attempt to cool (and manage) inflation, that the Bank of Canada will increase their rates again on October 26th. Do I know how much they will increase their rates if so? No, but what I can recommend is to watch the Bank of Canada Meeting or follow up on meeting notes to make sure you're informed on what is happening. I also recommend engaging with your Financial Advisor now in regards to your own rate and whether this Bank of Canada Announcement will impact you in any way. If not with your mortgage, the Bank of Canada Rate Announcement could impact your other lending or investment products, such as secured and unsecured lines of credits where the rate is Prime +/= your given rate.
If you have generalized mortgage questions, please again, feel free to reach ouT to the trusted Financial Advisor at your Bank, or feel free to reach out to me for general inquiries. Signed, Filipina Budget Girl.