We’ve seen a 25 basis point increase in bond yields this month, and that can only mean that rates are on their way up.
This should come as no surprise with inflation running at the top of the Bank of Canada’s target range, employment levels like we haven’t seen in years and the U.S. has already indicated that they will be increasing rates by up to 1% by end of next year.
All this spells higher borrowing costs for Canada.
The government has a very delicate job of balancing a soft landing for our real estate markets, and keeping highly indebted Canadians out of bankruptcy.
It remains to be seen how these increases will impact average households hell bent on using debt to fuel their spending.
With rates rising, it’s a good idea to get preapproved before all lenders increase their rates.
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