This past week the Bank of Canada raised prime rate for the 7th time this year. Bank prime now sits at 6.45%, up 4% from March. That is an incredible amount of quantitative tightening in a short period. Those with adjustable variable rate mortgages and lines of credit will feel the effect quickly and for those with mortgages coming up for renewal, they will feel the payment shock at their maturity dates. A ½ percent increase equates to about at $30 payment increase on every $100,000 so if your adjustable variable rate mortgage is $500,000 then next month your payment could increase by $150. If you or someone you know whose mortgage is maturing, reach out to my office so we can strategize in choosing the most suitable product for these uncertain times. 5 year terms are losing popularity while shorter term mortgages are gaining in popularity. At Lotus Loans & Mortgages we assess everyone’s unique situation and then make recommendations.