Globe and Mail ~ September 12th, 2023
Canadians renewing their mortgage in the next six to eight months face a three-pronged dilemma.
For many, there’s the question of how to handle the financial shock from much larger mortgage payments, as homeowners renew at significantly higher interest rates. A year and a half into the Bank of Canada’s rate-hiking cycle, that’s become a familiar issue for mortgage holders.
But for households renewing in the near future, there are two additional sources of uncertainty and stress. First, there’s the question of whether the central bank is truly done with rate increases. The bank held its trend-setting rate steady on Sept. 6, but there are two more rate decisions before the end of the year and no guarantees that rates won’t climb again, especially if inflation picks up again.
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