If you have a variable rate mortgage, you would have had about three increases in your mortgage payment over the last year. You may be wondering if now is the best time would be to switch your mortgage to a 5 year fixed rate mortgage.
The Bank of Canada has increased its overnight rate which is currently at 1.75%. between July 12th, 2017 and December 5th, 2018 that rate has increased from 0.75% to 1.75%. The 5 year fixed rate mortgage.
The overnight lending rate is the rate that banks lend and borrow money from each other. Any change in this rate will affect the commercial banks short-term lending rate i.e. consumer loans and variable rate mortgages.