Repost from @yvrmortgages As expected, the Bank of Canada (BoC) announced this morning an increase to their key interest rate by 0.75% (75 basis points). This is the 4th consecutive rate hike as the BoC has been attempting to front load rate hikes to drag down the inflation. WHY IS THIS RATE ANNOUNCEMENT SIGNIFICANT? Each variable rate mortgage has a specific interest rate at which the current mortgage payment would not be sufficient to cover the interest costs. This rate is referred to as the "Trigger rate". Should current interest rates reach the Trigger rate, the mortgage payment will automatically be increased to ensure that interest costs are paid. SHOULD I BE DOING ANYTHING IF I HIT MY TRIGGER RATE? YES! Contact your bank or lender to look at increasing your payment, changing your payment frequency, making a lump sum or scheduling double up to help bring your amortization back in-line. This will avoid the sticker shock of a much higher payment at renewal as the amortization will have to be set back to a maximum of 30 years. GOOD NEWS As inflation is a lagging indicator, the BoC has been front loading large rate hikes to get ahead of inflation. The sooner inflation is under control, the sooner we will see rates begin to come down It is important to get expert advice - if unsure please let me know and I will connect you with Faisal. . #socialrealtor #vancouverrealtor #yaletownrealtor #realestate #yvrre #mortgagerates #lending #prime #primerate (at Harry Kramm - Real Estate Advisor, Vancouver, Canada) https://www.instagram.com/p/CiN16bGhac0/?igshid=NGJjMDIxMWI=