Blog Article

Saturday, 05 March 2022

By Leahs Mortgages

Fixed or Variable? How to decide as interest rates rise

Fixed or variable? It’s a perennial question for mortgage seekers that’s expected to hit a fever pitch as the Bank of Canada begins what’s expected to be a steady stream of interest-rate increases in the coming months.

On Wednesday, the central bank increased its key interest rate to 0.50 per cent from a record low of 0.25 per cent. It’s the first rate hike since 2018. The increase will affect the cost of borrowing for various loans, including mortgages.