In the one-year period from May 2022 to May 2023, interest rates more than doubled. The prime rate (an average of the best rates of major commercial banks) rose from 3.2% to 6.7% while the underlying Bank of Canada overnight lending rate rose from 1% to 4.5%. The effect on Canadian homeowners has been significant. Imagine a family makes monthly payments on a $300,000 variable rate mortgage with a 25-year amortization. At 3.2%, the monthly payment would be $1,450, but at 6.7%, the monthly payment becomes $2,046&mda... read more