Leah Zlatkin quoted on BNN Bloomberg: ‘What Mortgage Owners Need to Know about the bank of Canada Hike’’

https://www.bnnbloomberg.ca/what-mortgage-owners-need-to-know-about-the-bank-of-canada-hike-1.1856200

“A trigger rate is reached when a homeowner’s mortgage payment no longer covers interest accrued since the previous payment.”

“Many Canadians are approaching their trigger point, at which point you need to start looking at do I make a lump sum payment into my mortgage? Do I increase my payment amount or do I potentially switch into a fixed-rate product in order to normalize the payments and not have an amortization that is just too long,” Leah Zlatkin, a mortgage broker and expert with LowestRates.ca, said in a phone interview Dec. 7.

Following Wednesday’s interest rate hike, prime lending rates are expected to climb above 6.45 per cent, bringing variable rates around 5.7 per cent and higher, according to a statement from Zlatkin.