On July 12, 2017 the Bank of Canada announced that they increased their key interest rates by 0.25 percentage points, to 0.75%. All 5 major Canadian banks in turn raised their prime interest rates from 2.7% to 2.95%. The Royal Bank of Canada was the first to implement this increase, followed closely behind by TD Canada Trust, Bank of Montreal, Scotiabank and CIBC.
Homeowners will inevitably feel this shift, some more than others. Those who purchased a property with a variable mortgage plan will see the increase in interest rates immediately, where as those who are on a fixed term mortgage wont actually see any changes until their term ends.
Find out the full scoop on the increase in key and prime interest rates here.
Find out how this is affecting Canadian mortgages, and other loans here.