Edmonton Mortgage Blog

If you have a variable rate or HELOC mortgage, your rate has gone up by 0.75%.

September 12, 2022 | Posted by: Natalie Wellings

I was away last week, at a conference, so you have likely already heard the big news since it’s absolutely everywhere right now. Last Wednesday, the Bank of Canada announced another hike to the prime rate. This time it was a 0.75% increase; taking prime from 4.70% to 5.45%.

It’s important to keep in mind that the prime rate ONLY affects those with variable or line of credit mortgages. THIS CHANGE DOES NOT AFFECT FIXED RATE MORTGAGES.  

I can appreciate that these rate increases feel endless. If you have a variable rate mortgage, your rate is now in line with the current 5-year fixed mortgage rates. While it may seem appealing to contact your lender to convert to a fixed-rate mortgage, I encourage you to take a deep breath and ask yourself if you are willing to commit to these high rates for years? The variable rate mortgage gives you the flexibility of riding the interest rate wave. It is my hope that this inflationary period settles and rates come down a bit. If you have a variable rate mortgage, that will mean that you will benefit if/when that eventually happens.

These are complicated times and it’s hard to have a one-way discussion here, about the intricacies of your particular situation. So, if you are feeling uneasy and unsure, please pick up the phone and call me or shoot me an email.  I am here for you! I do have the time, and I am HAPPY to help you navigate these waters.

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