After a decade of low interest rates, Canadian homeowners could be in for a shock when it comes time to renew.
The Bank of Canada says people renewing a fixed-rate mortgage could see between 14 and 25 percent in payment increases compared to 2022, and even more for variable-rate mortgages.
Mortgage Agent Andrew Evans with Dominion Lending Centres explains that rates are rising to a point that has not been seen in a while.
That could lead to mortgages with longer payment schedules in exchange for lesser payments, something the Bank of Canada has been shying away from.
Evans says there are ways to keep things under control when it does come time to renegotiate.
He adds that there are a growing number of options in rural areas like the Ottawa Valley, which could help you find the right rate.
While the upward trend in mortgage interest will be felt by a lot of Canadians, Evans says you shouldn’t get too discouraged at the moment.
(written by Kasey Egan)
