For the fifth time since the middle of 2017, the Bank of Canada has increased interest rates to 1.75%. Fixed rate mortgages aren’t usually affected by these increases. If you have a variable rate mortgage or an adjustable rate mortgage you could see changes in your next mortgage payment and thus increasing the cost of your mortgage. The amortization for a mortgage that does not have a fixed mortgage term will also change.
The bank has said that since the United States, Mexico and Canada Agreement (USMA) has now been negotiated, the expectation is that trade uncertainty will be reduced. The noted though that they still have some concerns about the US-China tensions.
They also noted that the concerns from household debt are abating as there is evidence that Canadian households are adjusting to higher borrowing cost.
To this end, the Bank has said that under the current market conditions they expect rates to gradually increase to between 2.5% and 3.5% over the next year.