Bank of Canada increases raises key interest rate by 1%

The Bank 🏦 of Canada 🇨🇦 has increased its key interest rate by 1.00% This brings the policy rate to 2.50% 🏦 The majority of lenders prime rate will go from 3.70% to 4.70% Let us explain what this means for you. 👉🏽It is important to understand that what goes up must come down. This can be validated through the past 30 years of rate increases by the Bank of Canada. 👉🏽There have been six periods of interest rate hikes ranging from 1.25% to 3.25% in the past 30 years. 👉🏽The one thing that the six periods had in common was that it didn’t take long for rates to start declining. The decline ranged from 1.25% to 5.125%. 🤔 As interest rates continue to rise and the real estate market continues to change, it is important to speak with a qualified mortgage professional to build your plan to grow your wealth through real estate. Contact our team of mortgage professionals to discuss how we can help because dealing with a professional should be your only option.