Conexia Mortgage

Today's Bank of Canada announcement of a 75 basis point increase is going to increase borrowing costs on lines of credit and variable rate mortgages. However, fixed mortgage rates are NOT directly impacted by Bank of Canada rate changes. The fixed rates are priced primarily off of the bond market. The bond market responded to market conditions faster than the Bank of Canada has this year. Due to this, fixed rates increased considerably earlier this year. We have seen times in the past when Bank of Canada increases rates and fixed rates do not change or even drop slightly. We do not expect fixed rates to drop in the short term, just highlighting that the Bank of Canada changes and fixed rate mortgages are not tied together. If you have questions on mortgages and rates, please contact us.