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When Can I get off This Ride?
 December 7 2022     Posted by Mary Poburan



Remember that rollercoaster ride I mentioned a few months ago….well I think we have almost reached the top, the scariest part of all. As I am sure you have heard, the Bank of Canada raised rates another .5% which will be mirrored at the institutional level bringing our Canadian prime rate at 6.45%, the highest since July of 2007.  Yikes!!! Well…the bad news is that everyone in a variable rate mortgage is seeing their payments increase just like our grocery bills. In March of this year, Prime was 2.7%( almost 2.5 times lower) Challenging times are ahead. The good news is that as of December of 2008 prime fell back down to 3.5% with the first decline happening in December of 2007, 5 months after the last peak of  6.25%. Although the past in no way will predict the future, one can hope that we too, will see this ride start coming down eventually. It is a scary time for everyone, Costs are high, and our futures are at stake. Now is the time to tighten our belts and hold on. For those who are nervous and want to consider getting off the ride and assess alternate options, I am here for the discussion. I still feel the long term bodes well as what goes up must come down but sadly I am not a fortune teller. It saddens me that the government feels this is the only way to control inflation as I do not think its doing the job it is intended to do. Perhaps more relief is coming by way of longer amortizations and easier qualifying thresholds but rest assured, This Too Shall Pass!

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