Quote:
Originally Posted by bluejays
Not to be rude, but I've heard that a few times and my ignorant self is saying, "so what"? I renewed back in May. What difference does it make if those with renewals coming up also have to renew at a high rate?
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That increase in mortgage interest drives up the inflation rate potentially making it more difficult for the Bank of Canada to combat inflation appropriately. In January, mortgage interest continued to be the #1 driver of inflation with a 27% growth rate. If the Bank of Canada is trying to hit 2% and one component of the calculation is going to be increasing at 20%, 30% or 40% that target could be out of reach.
That doesn't even touch on the issue that housing is the biggest part of a household budget and the upcoming increases could be brutal for household finances.