Bank of Canada hikes key interest rate to 3.25%
Sep 12, 2022
The Bank of Canada raised its benchmark interest rate three-quarters of a percentage point on Wednesday and signaled that the key rate “will need to rise further” to tackle high levels of inflation.
The central bank’s policy rate now stands at 3.25 per cent. This marks the fifth rate hike so far in 2022 — Canada’s key interest rate sat at just 0.25 per cent in January.
According to Ratehub.ca’s online mortgage calculator, if you purchased a $630,000 home with a 10 per cent down payment and a five-year variable rate of 3.5 per cent, payable over 25 years, your monthly mortgage bill would jump by $236 a month, from $2,919 to $3,155, meaning that you would be spending $2,832 more per year on mortgage payments.