A Mortgage Scenario: How Variable Mortgage Payments Have Changed in 2022

On 7 December, 2022, the Bank of Canada hiked its key interest rate by 50 basis points to 4.25%, the seventh consecutive rate hike in 2022. The highest it has been since January 2008. An increase in the overnight rate has an immediate impact on the homeowners with a variable rate. Here is a mortgage scenario:

As the following figure illustrates, the monthly payment had an approximate increase of $1,500 from January to December in 2022 in this example.

If you have a variable rate mortgage with fixed payments, you may want to check with your lender and/or broker to find out what is your Triger rate.

What is a Triger Rate? Check this out:

https://www.rihanamortgages.com/post/what-happens-when-your-mortgage-hits-the-trigger-rate-everything-you-need-to-know-about-trigger-rate

If you have any questions, please leave a comment below. Subscribe to Rihana's Blog: https://www.rihanamortgages.com/blog