Many financial pundits think the Bank of Canada will raise the key interest rate tomorrow. As I have a variable rate mortgage, such a change is of interest to me (get it?).
Since I bought my home, the key interest rate has changed just five times and the last increase was almost seven years ago. It’s been a good seven years from a debt perspective. I don’t know how much the BoC will raise the rate but I’m hoping it won’t be more than 0.25%. My mortgage will undoubtedly be more but how much more is the question.
Will such a move put me in dire straights? No, but there will be less money to go around and the bigger question is, when is the next rate hike? Does this signal more frequent and larger hikes? Let’s see what happens tomorrow.