“Preparing for Change: How to Handle the Possibility of Increased Mortgage Interest Rates in 2023”
As the economy continues to recover and inflation rates potentially increase, there is speculation that the Bank of Canada may raise interest rates, and experts predict it could be as early as January 25, 2023. While this is just speculation and no official statement has been made by the bank. As a homeowner or homebuyer, it’s important to be informed and prepared for the potential impact of a rise in interest rates on your finances.
An increase in mortgage interest rates means that it becomes more expensive for borrowers to access credit, and this can lead to higher monthly mortgage payments, making it more difficult for some homeowners to afford their homes. It can also make it more difficult for prospective home buyers to qualify for a mortgage and increase the overall cost of home ownership.
Homeowners with variable rate mortgages should be prepared for potentially higher monthly payments, and it’s a good idea to speak with your lender or a financial advisor to discuss your options and ensure that you are financially prepared for an interest rate increase.
For homebuyers, it’s important to be aware of the potential for interest rate increases and factor that into your decision-making process. One way to protect yourself from potentially higher payments down the line is to lock in a fixed-rate mortgage.