BNN Bloomberg ~ September 1st, 2023

Experts say Canadian mortgage owners should brace themselves for a potential rate hike next week from the Bank of Canada and budget accordingly.

Many mortgage owners have felt the effects of higher borrowing costs as the Bank of Canada moved to increase interest rates 10 times since March 2022, bringing the policy rate to five per cent.

The central bank’s next interest rate announcement is scheduled for Sept. 6. Bloomberg News reported that economic signals have been mixed since the Bank of Canada brought rates higher in July, but a Bloomberg survey found that a majority of economists expect the central bank to hold its policy rate next week. Gross domestic product figures released Friday showed a slowdown the in second quarter of the year, prompting more support for an upcoming rate pause.

Those expectations aside, James Laird, co-chief executive officer of and president of CanWise Mortgage Lender, said mortgage owners should prepare for a rate hike or a hold from the Bank of Canada next week.

“Borrowers should be budgeting for a rate hike so that they are prepared if it does happen,” Laird said in a written statement on Tuesday.

“The bank chose to raise at the last two announcements, so a raise is certainly still on the table.”

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