Calgarians, Reassess Your Mortgage: Interest Rate Hike Means Higher Payments

As a physiotherapist working with newcomers in Calgary, I've noticed the city's diverse population closely follows financial news. The latest interest rate hike by the Bank of Canada, which took effect on October 28, could impact your monthly mortgage payments. This increase means that if you have a variable-rate mortgage, you might see a rise in your monthly payments.

According to Leah Zlatkin, a mortgage broker, a 25-basis-point increase could add approximately $15 per month for every $100,000 in mortgage debt. This means a $300,000 mortgage could see an extra $45 per month, and a $500,000 mortgage could increase by $75 monthly.

It's important to reassess your budget and consider whether a fixed or variable rate mortgage might be more suitable. While variable rates may offer lower initial rates, the uncertainty of future rate hikes could negate those savings. Fixed rates, though higher initially, can provide peace of mind in a volatile market.

The next interest rate announcements are scheduled for December 9, January 27, and March 3, 2027. Keep an eye on these dates as they could further impact your mortgage payments.