Interest rate hike Canada

Rising rates and falling home prices could hit those who've been borrowing via home equity lines of credit. Here's what you need to know.

And, as Laird noted, fixed rates have already increased by 1.5 per cent as bond yields priced in the anticipated Bank of Canada rate increases. Financial institutions tend to raise their prime rates in tandem with Bank of Canada hikes, though they don’t always match them. And while many borrowers don’t realize it, full repayment of the loan can be called any time by the bank, unlike a traditional mortgage. And the problems would only materialize if they sold the home. Their share rose from 37 per cent in the first quarter of 2019. Article content Article content Peter Routledge, OSFI’s superintendent, highlighted a “tail risk” associated with the combined loan product in a January speech, noting that it “dynamically re-advances” credit to mortgage holders as they pay down their home loan. Article content Article content Article content Article content