Has the Bank of Canada changed borrowers’ minds about variable rates?

“I would wait until you actually start seeing rate hikes and if you get really nervous at this point, do it.” [lock in a fixed rate], “she said.” But if you follow the plan that I have laid out for most of my clients – overpay your variable, pay it like it’s fixed – you’re pretty much seated. “

While the Bank’s announcement showed rate hikes were on the horizon, it gave no indication of the frequency or severity of those increases, with little prospect of a dramatic bullish move in any short period of time. 2022.

Zlatkin said his intention to hike rates in mid-2022 was a smart option, with a measured and cautious approach to rate hikes next year being a smarter strategy than “quick and drastic” hikes.

“The reason I think this makes a lot of sense is that as things evolve, as the economy returns to normal, you will probably have to see gradual increases in the Bank of Canada’s overnight rate. Canada, ”she said. noted.

“That being said, if you start making these changes drastically, all at the same time, it’s going to lead to a bit of a crazy market. If you start doing it slowly over time, then that incremental change won’t do. panic people and won’t think the market or the economy is going to collapse.