BANK OF CANADA INTEREST RATE UPDATE | September 2022
Thursday, September 15, 2022
The Bank of Canada’s rate increase of 0.75% was announced last week. This is a 3% jump since the beginning of the year. 📈 This morning 2 big banks followed suit raising their prime lending rate by 75 basis points from 4.7% to 5.45%. 🏡 For a homeowner with a $600,000 mortgage , this represents nearly $1000 more in payments. 🥴 The effect of our local market has been felt, particularly in the last 2 months with prices down 8% since July, sales down 12% and inventory up 10% month over month. Prices in Montreal have essentially corrected back to where they were a year ago which is still up 30% since 2018, so homeowners have no need to panic. We now have just over 6 months of inventory which is considered a buyer’s market. The next interest rate announcement from the bank of Canada is expected on Oct 26th.