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Interest Rates are going up in Canada Starting Today- 604-313-3358

By Lesley Wagstaff

Real Estate Agent with Re/Max Results Realty in Vancouver, BC

June 01, 2010 05:38 AM

Today the Bank of Canada base rate went up 1/4% to .50% which meets that starting today all of the banks will be raising their prime rate by the minimum of 1/4% as well to 2.50%. This only will effect you if you have a variable rate mortgage. Your payments will be going up. The bank will be letting you know you new payment shortly.

Each bank handles this change differently. Some start calculating the new rate today. Some have you start paying the beginning of next month. Some (like ING) do not charge you the higher rate for 3 months. (This is if you currently have a mortgage with the bank.) If you are looking at getting a new mortgage now you will get the new prime rate the moment the bank announces their increase.

Here is a link to the Bank of Canada Page with the information regarding the rate increase:

http://www.bank-banque-canada.ca/en/fixed-dates/2010/rate_010610.html

If you need any help with a mortgage whether, buying, selling or looking to refinance, I would love to have a chance to sit down with you and help you through the steps so you can make the right financial decisions for you and your family.

Fixed Rates are still at historic lows, so you may want to see if it is worth paying the penalty and refinancing. Just yesterday, I helped someone lower their interest rate by 1.5% They are going to save close to $95,000.00 over the period of 5 years. (Yes, and that takes into account their penalty!)

As a licensed Mortgage Broker with Dominion Lending Centres Mountainview, I can help you with any aspect of your mortgage needs. Call or email me anytime with your questions. 604-313-3358, realestate@sellingBC.ca, or Visit my website for more mortgage information, rates and calculators. http://www.sellingbc.ca/Mortgage_Information/page_1841953.html

Lesley Wagstaff

604-313-3358 Direct Line

Dominion Lending Centres Mountainview

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Chris Wechner

CW Health Inc - Waterford, MI

Hi, Lesley. This is nice of your to post this for your current and prospective clients. I bet a lot of people were wondering how this worked.

I'm curious how your raising the rate will affect sales and your economy. I know that we're struggling with the same thing here in the States. If we're smart, the US leaders will watch closely to how people in Canada react.

Jun 02, 2010 03:23 AM

Re/Max Results Realty in Vancouver, BC - Coquitlam, BC

For Real Estate and Mortgages

Hi Chris:

Thanks for reading and commenting. I really am not sure how this is going to affect the market. The housing market had been growing quite steadily until the last month or so. Who knows? It may make people jump off the fence. I am more inclined to think it will slow things down even more. (I, of course, am not an economic analyst.) One of the bigger issues in BC is going to be a new tax they are bringing in July 1st called the HST. What it is going to do is combine the Provincial tax and a Federal tax and be charged on everything. The unfortunate thing is that most things did not have both taxes so it will raise a large majority of the tax base from 5 or 7% to 12%. It is going to be a fun summer.

Have a great day.

Jun 02, 2010 04:51 AM

Wow, Lesley! Do you know if only British Columbia will institute this "combined" HST, or will the other provinces try this, too?

BTW...What does the "H" represent in HST. (I know that PST is Provincial State Tax, and GST is General--Federal--State Tax.)

It seems like it ought to be called the SST, the Screwover...maybe even something a little stronger than that.

Hopefully, your interest rate hike will nudge people into buying rather than curtail them.

Don't worry about not being an economist. If your country's economists are like ours, their guesses are a little bit lower than chimpanzees (right less than half of the random coin flip's "guess"). Statistics say that you'll do better.

Jun 03, 2010 03:01 AM

Ontario has already instituted it. It killed the economy for about a year and that was before any down turn in the ecomony.

The funny thing is the H stands for HARMONIZED. Kind of ironic heh? The thing is that not a lot of things in real estate are going to be effected. New houses will be, but they have also put a rebate plan in for the lower priced homes so you will get a lot of the difference back, Realtors commissions will be effected, so instead of them charging 5% GST on the Commissions, it will now be 12%. Most of the uncertainty goes with the unknown factor of how is this going to impact our lives. That's what will hold back consumers.

One of our former premiers, has always been quite the advocate and has started a petition against it, so time will tell what will happen. Until then I guess you just go with the flow.

Jun 03, 2010 04:42 AM

Interest Rates are going up in Canada Starting Today- 604-313-3358

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