> Mortgage Centre | What Prime Increasing by 0.25% Means For You and Your Mortgage
 

What Prime Increasing by 0.25% Means For You and Your Mortgage

 

Last week the Bank of Canada announced an increase in their overnight prime by 0.25% of which the banks and lenders followed suit. Media has done a great job covering the news but also a great job inciting fear into the public.

Before everyone starts panicking and looking to lock into a fixed rate, here are some calculations that you might want to take a look at.

On a $10,000 line of credit, that means a payment increase of only $25/year, if you owe that much. On a $100,000 mortgage, that means a monthly payment of approximately $13/month. The average mortgage is approximately $300K, so people are paying on average, $39/month more.

It’s not so scary when you break it down by dollars and see that a rate increase is the equivalent to less than a week’s worth of Starbucks.

Before you make any decisions regarding your variable rate mortgage, or any type of mortgage for that matter, Call Your Mortgage Broker!

Please contact Rose Blankenagel if you have any questions or concerns about your mortgage, or you’d like me to see if making a switch could save you some money.

-Real Mortgage Advice