'Every option is on the table' as Canadians face higher variable-rate mortgage payments
In just a few short months, Lauren Gilbert says her monthly variable-rate mortgage payments have increased by nearly $1,000 following a series of interest rate hikes imposed by the Bank of Canada.
Gilbert and her partner, Curtis, bought their first home together in Pitt Meadows, B.C., last year. By March 2022, their monthly payments amounted to about $2,400. But after several bumps to the central bank’s key interest rate, including a one per cent increase in July, Gilbert saw their monthly bill shoot up to about $3,300 by the end of September.
“It was just really a lot of panic,” Gilbert told CTVNews.ca on Nov. 3. “It's so over our budget. Something that’s really important to us is [having] a family but when you think about the loss of $1,000 over however many years this lasts, it's pretty tough to swallow.”
Gilbert is one of dozens of Canadians who reached out to CTVNews.ca to share how rising interest rates have impacted their personal finances. The emailed responses have not all been independently verified.
Canadians with variable-rate mortgages are especially sensitive to interest rate hikes, as the interest levels on their loans fluctuate in relation to the Bank of Canada’s key interest rate. This means their monthly interest payments will rise as soon as the central bank increases its key interest rate.
Read the article HERE