If you’re a homeowner or planning to become one, changes to the Bank of Canada (BoC) rate can have a direct impact on your mortgage—and your monthly budget. Understanding how it works helps you make smarter decisions, especially in today’s shifting rate environment.
What Is the Bank of Canada Rate?
The BoC sets the overnight lending rate, which influences how much it costs banks to borrow money. When that rate goes up or down, it affects variable-rate mortgages, lines of credit, and new fixed-rate mortgage offerings.
How It Impacts You
Variable-Rate Mortgages: Your monthly payment or interest portion may increase when the BoC hikes rates, if you currently hold one of these types of mortgages.
- Fixed-Rate Mortgages: Your rate doesn’t change during your term, but future renewals may be higher.
- New Homebuyers: Rising rates can reduce how much you qualify to borrow.
- Renewals & Refinancing: Timing matters—locking in a new rate early can save you thousands.
What You Can Do
Review your mortgage type: If you have a variable rate, consider whether changing your mortgage to a fixed-rate one makes financial sense.
Mortgage coming up for renewal? Renew early if possible. Some lenders let you renew up to 120–180 days in advance at competitive rates. We have access to a huge network of lenders and can help you with your choice.
Consult the Rampone-Marsh team: We can run the numbers and help you explore fixed, variable, or hybrid solutions.
Don’t panic: A small rate hike might not mean drastic changes—but being proactive helps.
Plan Ahead with Expert Guidance
At Rampone-Marsh Mortgages, we work in Kelowna and all across BC to help homeowner or business owners navigate rate changes. We’ll advise you on a personalized mortgage strategy that fits your budget and goals. Reach out today to our office for trusted advice that keeps you in control of your future.
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