Edmonton Mortgage Blog
Your Edmonton Mortgage Broker: Natalie Wellings
Interest Rate Announcement: 0.50% increase to prime rate!
April 13, 2022 | Posted by: Natalie Wellings
The Bank of Canada announced a 0.50% increase to the prime rate, this morning. This is the first time the Bank of Canada has increased by more than 0.25% in over 20 years! The rate increase was not unexpected, many experts had been predicting a 0.50% increase.
Naturally, when an announcement like this is made, some people tend to hit the panic button. To keep things in perspective, after today’s announcement, the prime rate is now 3.20%. Prior to the pandemic, the prime rate was 3.95% and stayed at that rate for more than two years!
The prime rate is still lower than the pre-pandemic one and those with variable-rate mortgages and home equity lines of credit have enjoyed savings throughout the pandemic due to the ultra-low prime rate during that period.
Despite the increase, variable-rate mortgages are still lower than today’s fixed rates and may be a viable option, depending on your particular financial situation.
If you have questions I am here to help!
Note: the next interest rate announcement is scheduled for June 1st, 2022.
Natalie Wellings, Verico Compass Mortgage Group
780-722-6287
