Many GTA homeowners who gambled on lower mortgage rates this past fall are now facing a rude awakening. Instead of decreasing, fixed mortgage rates have actually climbed, driven by rising government bond yields. According to Leah Zlatkin, a licensed mortgage broker, some clients who rejected fixed-rate renewal offers around 3.7% are now seeing rates starting with a four. This delay translates to higher monthly payments.
The Bank of Canada had already cautioned that roughly 60% of mortgage holders in 2025 and 2026 will encounter increased payments as they renew mortgages taken out during the pandemic’s ultra-low interest rate environment. Zlatkin advises homeowners to start planning their renewal strategy four to six months in advance and to stress-test their budgets by modeling payments 15% to 20% higher. Consider shorter terms or flexible prepayment options to navigate the uncertainty. Read the full story on mpamag.com to learn more about how to protect yourself during this time.
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