With rising interest rates by the Bank of Canada to curb inflation, Canadian homeowners and house hunters undoubtedly have questions about what it means for their real estate plans.
Last week, Bank of Canada increased interest rate by 75 basis points.
Ensuring they understand the potential impact that rising interest rates could have on their mortgage or other loan payments, as well as how it effects the homebuying process, is critical to Canadians’ financial well-being, said an advisory from TD Bank.
TD developed the below graphic with essential advice from its mortgage specialists to help Canadians navigate the current market.
It includes information for both current homeowners, who should look to revisit the terms of their variable or fixed rate mortgage and know their flexible options, as well as house hunters, who should be prepared to adjust their budget, lock-in a rate, and reconsider their options, said the advisory.
The graphic will also help explain the different rate types, and what a Home Equity Line of Credit (HELOC) is, it added.
