Posted On Nov 22, 2022

It is important to understand that Fixed rate and Variable rate mortgages are based on different "money markets". 

When the news/media says the Bank of Canada is raising rates, that change will directly impact Variable rate mortgages and Lines of Credit. This is a result in change to a lenders' Prime Rate (which does not impact Fixed rates).

Fixed rates are based on the Bond Yield, which can fluctuate at different times than the Prime Rate. 

Think of Diesel vs. Petrol. They both fuel a car but they’re different fuels.

In summary, don't let the news/media be your only source for mortgage education.