Rates reach 5.00% — the peak of the cycle
The top, though nobody knew it yet. Prime hit 7.20%, and every Fort McMurray borrower coming off a 2018-vintage five-year fixed was looking at a genuinely different payment.
In payment terms, a quarter-point move adds roughly $16 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 $48 a month.
The practical move at a peak is to plan the renewal, not to predict the Bank. If your term ends within a year, it is worth pricing the options early — including whether breaking and re-signing beats riding it out.
What the Bank said
“The Bank of Canada today increased its target for the overnight rate to 5%, with the Bank Rate at 5.25% and the deposit rate at 5%. Global inflation is easing, with lower energy prices and a decline in goods price inflation.”
The rate path around this decision
For context, unemployment was running at about 5.4% and inflation at 3.3% 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.