At the moment we are seeing discounted variable rates as low as Prime – 1.15% right now. With the discounted rate promotions come a ton of questions and concerns. We wanted to make sure we addressed a few major concerns.
We understand that our clients like to know exactly what their monthly mortgage payment will be. With a variable rate mortgage there is a chance that your mortgage payment could fluctuate. Your monthly mortgage amount will only increase if the Bank of Canada’s prime rate was to increase.
In the past we have seen the Bank of Canada raise the prime rate by increments of .25%. Which would minimally change your monthly payment: a .25% increase in Prime would increase your monthly mortgage payment by about $13 for every $100,000 you have borrowed. Keep in mind as well, that The Bank of Canada has 8 scheduled meetings per year where they decide whether or not they will move the Prime Rate. This decision doesn’t happen overnight.
If you have any other questions or concerns, please do not hesitate to contact us here at the office 604-552-6190.