It’s important to note that as of my knowledge cut-off, the Bank of Canada (BoC) has not announced any official plan to increase the interest rate on January 25, 2023. However, as the economy continues to recover and inflation rates potentially increase, it’s possible that the BoC may consider raising interest rates in the near future to stabilize the economy and curb inflation.
An increase in mortgage interest rates can have a significant impact on the housing market and on homeowners who have mortgages. When interest rates rise, it 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.
For homeowners, it’s important to be prepared for a potential increase in interest rates. Those with variable rate mortgages should be prepared for 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 those looking to purchase a home, it’s important to be aware of the potential for interest rate increases and factor that into your decision-making process. It may be a good idea to lock in a fixed-rate mortgage if interest rates are on the rise to protect yourself from potentially higher payments down the line.
It’s also important to remember that an increase in interest rates doesn’t necessarily mean that the housing market will suffer. Despite the increase, the market may still remain attractive for buyers, as Canadian real estate has proven to be resilient in the past. Additionally, historically, the rates still remain low compared to the past decades.
Regardless of whether or not the interest rate increases on January 25, 2023 or any other date, it’s essential to be prepared and informed of your options. Consult with a mortgage broker or financial advisor to review your current situation and plan accordingly.