In the past couple of weeks since the Bank of Canada publicly increased the interest rate to 0.75% from 0.50%, we have been notified of by our numerous lenders that their mortgage rates are going up “despasito”, (slowly).
The increase have affected immediately to those borrowers who had a variable rate mortgage, and then to those who are applying for new mortgages either for purchase or refinance purposes and in both variable and fix rate mortgages.
The rate increase effect has been felt also in an increase of mortgage applications as the escalating home selling price has been not only slowed down but actually reduced in some markets in Ontario.
