What are brokers advising borrowers after the latest Bank of Canada hike?

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“The public are getting used to and expecting the increases,” he said. “While I am getting many calls to advise on lock-in options, they do seem to be calmer calls. As usual, Canadians find a way to adjust.”

Of course, many Canadians whose budgets were already stretched by the series of rate hikes throughout 2022 undoubtedly viewed the latest with dismay, particularly those who took out a mortgage when rates had hit rock-bottom in 2020, only to see them spiral upwards since last March.

Others have seen their variable-rate mortgages hit their so-called “trigger point,” the level at which payments no longer whittle down the principal and instead only cover the interest owed.

Still, there are options available for such borrowers, Trafford said, with switching to a fixed rate often giving them peace of mind and meaning that they won’t see their rates climb even higher in the coming months.

“There are clients that are struggling and in panic mode,” he said. “I do feel it’s better for them to secure the best rate possible for a fixed product in the interest of their sanity and sleep. When they see the fixed rate is substantially lower than the variable, they almost feel like it’s a victory.”

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