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  • Writer's pictureScott Nazareth

Mortgage Rates Are Skyrocketing!

it's important to provide you with a clear understanding of the current economic situation in Canada and how it might impact your mortgage. The economic changes in 2022-2023, including rising interest rates, inflation, the cost of living, and bond yields, all have implications for your financial well-being. In this message, we'll explore these aspects and discuss ways to navigate these challenges.

  1. The Rise in Interest Rates

Canada has seen an increase in interest rates by the Bank of Canada, which is aimed at stabilizing the economy. However, this directly affects mortgage holders. If you have a fixed-rate mortgage or are considering one, it's important to be aware of how these changes may impact your payments.

  1. High Inflation in 2022-2023

Inflation is on the rise, which means the cost of everyday goods and services is increasing. Your purchasing power is affected as prices for groceries, utilities, and other necessities go up.

  1. The Cost of Living

The combined impact of rising interest rates and high inflation directly impacts the cost of living. Everyday expenses like groceries, fuel, and housing have become more expensive, which affects your family's financial stability.

  1. Rise in Bond Yields in Canada and High Fixed Rates

Increasing bond yields are closely connected to rising fixed mortgage rates. This is particularly important for homeowners with fixed-rate mortgages, as it may impact your monthly payments and overall financial planning.

What Can Be Done:

It's crucial to remain proactive and make informed decisions during these challenging times. Here's how you can take control of your financial situation:

  1. Mortgage Review: Consider a thorough review of your current mortgage. Evaluate whether any adjustments are necessary to align with your financial goals and the evolving market.

  2. Budget Assessment: In response to the rising cost of living, reevaluate your budget. Together, explore potential opportunities to enhance your financial resilience.

  3. Mortgage Options: If you're thinking of refinancing or purchasing a new property, discuss the available mortgage options with your broker. This could involve examining both fixed and variable rates, as well as determining the optimal mortgage term.

In summary, these economic changes present challenges, but they are manageable with the right approach. We are dedicated to offering you guidance and support to help safeguard your financial well-being. Don't hesitate to reach out with any questions or concerns.

Wishing you all the best during this period of economic change!

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