Interest rates are rising, and that has many people worried about renewing their mortgage.
Canada's five biggest banks moved swiftly to match the bank's increase, raising their prime lending rates by the same 50 basis points.
"What I think people are generally looking for is: 'Can I lock into something lower or what can I do? Is there anything I can do to reduce my payments?' And, unfortunately, the short answer is probably not," Boughen said. As an example, Boughen offered the case of one of his clients whose mortgage amount was around the average $300,000 when they bought their house.
"It comes as a shock initially. But realizing that there's no other choice because their mortgage costs are coming up, people [say] 'home gets paid for first and then we figure everything else out.'"How does increasing interest rates actually help curb inflation?People who don't need to renew their mortgage soon will be spared for now, Macdonald says, but that's cold comfort for some.
Justine Hickey of Regina used money from her father, who died, to put a down payment on her home when the housing market was in a good spot in 2020.Despite not having to renew her mortgage for three years, Hickey is worried about possible future financial issues. David Macdonald, an economist with the Canadian Centre for Policy Alternatives, says some people might have to pay double their current interest rate when they renew their mortgage.
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