Data on July 1, 2022 Prime Increase to 3.7%

Today, the Bank of Canada showed once again that it is seriously concerned about inflation by raising its overnight benchmark rate to 1.50% – making Consumer Prime 3.70%

This latest 50 basis point increase follows a similar-sized move in April and is considered the fastest rate hike cycle in over two decades.

Everyone STAY COOL!

Says Mortgage Mark Herman, top Calgary Alberta Mortgage Broker. Read More

Rates Increasing: How Much? & How Fast?

With interest rates now on the rise, 2 Questions: How much? & How fast?

Summary:

  • Rates are up by 1.45% on the Variable already (Prime was 1.75% and is now 3.2%)
    • There HAS BEEN a 1 x .25% increase and 1 x .5% increase so far = .75% so far
    Expected increases are 1 x .5% or .75%, and 1 x .25% still to come.
    • so expect Prime to get to 3.95% from 3.20% today, April 25th.
    • Insured variable rates are at Prime – 0.95% = 3.2 – .95% = 2.25% today
    • and they are expected to increase to 3.95% – .95% = 3.00% and then hold and decrease in the Fall of 2022.
    • these rates are lower than the current 5-year fixed rates of about 4% and are expected to come down in the Fall, 2022.

    DETAILS:

    Traditionally the Bank of Canada has used 0.25% as the standard increment for any interest rate move up, or down.  Occasionally the Bank will move its trendsetting Policy Rate by .50%, as it did at its last setting on April 13. Read More