Bank of Canada Increased Interest Rates Today
Bank of Canada raised its bank rate today to 4.25%. Read about inflation, GDP (Gross Domestic Product), CPI (Consumer Price Index) ad more in their latest press release HERE
My recommendation if you are looking at purchasing or expect to refinancing in the near future is to lock in at the best short term interest rate available for a year or 2 year term as the interest rate is expected to go down in 2024. Still amortize your mortgage over 25 or 30 years, but give yourself the opportunity to negotiate with the bank who has already approved you. Ask them for a lower interest rate when you see the interest rates start to go down again.
Also read the fine print of your mortgage. It is very common that the penalty to get out of your mortgage is only 3 months penalty interest. Depending on the amount you have financed it may be intelligent to look at the cost to break your current mortgage to move into one at ta lower rate.
Of course, talk to your bank manager or mortgage broker to find out exactly what it will cost you to obtain the best advice so that you can make the wisest decision.