There shouldn’t be any major rise in monthly mortgage payments after the latest increase in the Bank of Canada’s key interest rate.
In a widely expected move, the Bank of Canada raised its key interest rate a quarter point, taking it up to 1.5 per cent, the first rate increase in six months.
But Speaking on the Jim Harrison show on Radio NL, the President of the Credit Counselling Society of BC says it’s not the short term implications that cause him concern.
Scott Hannah says its not the short term that causes concern.
“This is the second increase this year. The expectation is that the Bank of Canada will increase the overnight rates again in the fall. So all these increases on top of last years increases start to have a measurable impact on a consumer’s ability to manage.”
Hannah says on an average Kamloops home priced around $400,000 this increase will only amount to about $50 extra.