Another three-quarters of a point
Prime moved above 5.45%. Fixed-payment variable holders were now watching more of each payment go to interest and less to principal — the same payment, doing less work.
In payment terms, three-quarters of a point move adds roughly $44 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 $132 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 3.25%, with the Bank Rate at 3.5% and the deposit rate at 3.25%. The global and Canadian economies are evolving broadly in line with the Bank’s July projection.”
The rate path around this decision
For context, unemployment was running at about 5.1% and inflation at 6.9% 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.