The Bank of Canada raised the interest rate for the first time in seven years.
 
The move put an end to years of "easy money" and debt-fueled purchases of vehicles and homes. It rose from 0.5 per cent to 0.75 per cent, prompting Canada's largest banks to raise their prime rates a quarter percentage point to 2.95 per cent.
 
Prime rates affect the cost of borrowing on floating-rate loans, like variable-rate mortgages, credit lines and student loans.
 
So, how does this all affect mortgages?
 
"Your mortgage rates are going to be higher which means your mortgage payments will be a little bit higher," explained Tawnie Misik, a realtor with Royal LePage Noralta, "to qualify too, you're qualifying at a higher interest rate."
 
If there was a time to buy, it was before July 12; Misik recommends buying now before the rates are raised any more.
 
As the interest rates are raised, the prices of homes will also increase as the market begins to move again.
 
For those with mortgages already, the rate can become a bit murky.
 
"If you have a variable mortgage, you're probably wanting to lock in (your rate)," advised Misik.
 
She added that it would be wise to sit down with a mortgage broker to discuss options that best suit each person.
 
The last time rates were at .75 per cent was 2015.

More Local News

Teen missing since last Tuesday

A missing girl hasn't been heard from in almost a week.

Spring gas prices continuing to bounce around

Fuel prices have been all over the map recently..

What is required to warrant an Amber Alert?

According to police, not every missing child requires an Amber Alert.

Fort Sask already reflecting province's photo radar plans

While the province is making some adjustments to their photo radar rules, not much will change in Fort Saskatchewan.

Update: Fort Saskatchewan RCMP need help finding 12-year-old

The Fort Saskatchewan RCMP have found Shenelle Jenkins.

Lamont County assembling flood drainage team

Lamont County is trying to get ahead of spring flooding this year.

MP Lloyd focused on helping local entrepreneurs

A local Member of Parliament is looking to better the region with faster broadband internet.

Update: RCMP looking for missing Fort Saskatchewan teen

Police have found Kirshtine Palabay safe and unharmed.

Sledge Hockey Day another success

It was the biggest year yet for the Robin Hood Association's third annual Sledge Hockey Day.

Primary Care Network says the best diet is a balanced one

How much food from each food group should be in meals?

DiscoverWestman.com is Westman's only source for community news and information such as weather and classifieds.

Search the Biz Guide

Login