Interest Rates for Mortgages Increase
Today the Bank of Canada increased their key interest rates to 4.5 per cent and they predict more increases in the near future. Higher interest rates result in buyers not being able to afford higher priced homes. For example, a 10 year fixed rate at ING Direct was 6.05% before the interest rate hike, and now it is 6.15%. At the 6.05% rate the monthly payments on a $200,000 mortgage were $1407.01 and now they are $1419.40 at the 6.15% rate.
For more information on the interest rate hike, please click here
