A half-point hike — the pace picks up
A double move, and the signal that the Bank was not going to walk this up slowly. Anyone in a variable rate saw the second increase in six weeks.
In payment terms, a half-point move adds roughly $26 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 $78 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 1%, with the Bank Rate at 1.25% and the deposit rate at 1%. Russia’s ongoing invasion of Ukraine is causing unimaginable human suffering and new economic uncertainty.”
The rate path around this decision
For context, unemployment was running at about 5.4% and inflation at 6.8% 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.