The first hike: rates start climbing
This was the turn. After two years at emergency lows, the cost of a variable-rate mortgage started rising — and in a town where a lot of mortgages are large relative to income, the direction mattered more than the first quarter point.
In payment terms, a quarter-point move adds roughly $13 a month to a variable-rate mortgage for every $100,000 borrowed, on a 25-year amortization. On a $300,000 mortgage that is about $39 a month.
If your income here includes overtime, shift premium or a bonus, rising rates squeeze qualifying twice: the payment goes up and the stress-test rate goes up with it. Which lender you apply to starts to matter a great deal, because they do not all average variable income the same way.
What the Bank said
“The Bank of Canada today increased its target for the overnight rate to 0.5 %, with the Bank Rate at 0.75 % and the deposit rate at 0.5 %. The unprovoked invasion of Ukraine by Russia is a major new source of uncertainty.”
The rate path around this decision
For context, unemployment was running at about 5.4% and inflation at 6.7% around this decision.
Where this leaves you
Rate announcements make headlines; approvals turn on your own numbers. If you're buying, renewing or refinancing in Fort McMurray, the useful next step is finding out what you actually qualify for — see current rates, run the math, or start an application. You can also follow the local market in our Fort McMurray housing market reports.