Bank of Canada increases interest rate to 4.5%
The central bank announced another 25 basis-point increase which was expected, taking the current interest rate from 4.25% to 4.5%. The Bank of Canada continues to say that these growing interest rates are a result of, and a remedy for, inflation.
Even with the current rate hike, buyers are actually better off right now despite the much higher rates compared to February 2022. The monthly cost is similar, your debt load going forward is considerably less! In this case by $160,000 AND you can get into the market starting with $40,000 less!!
Bonus: This chart displays only a 20% correction in house prices from February 2022 until now when it is actually closer to a 25% drop in house prices.
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