Canadians are starting to take note that the key number determining how much they pay for a mortgage is very likely going to soon go up.
Mortgage specialists are increasingly hearing from people in the property market now that the Bank of Canada has strongly hinted it could hike the key interest rate as early as July 12, which would be the first increase in nearly seven years.
For those looking to buy in the near-term, now is the time to lock in a mortgage rate, which financial institutions generally do for between 90 and 120 days.
But for homeowners with a variable rate mortgage, the question is whether to jump into a fixed rate to protect against rate hikes, or continue to ride out the risk and currently lower rates that variable brings.
While those with a fixed mortgage won't be immediately affected by rising interest rates, those who don't have much time left on a five-year term may want to look into locking in another five years. That may incur penalties, but might still make more sense after doing some number-crunching with your financial institution.