We are about to enter the "oh shit" moment if Bank of Canada (BoC) has confirms they are going to be increasing mortgage rates July 12th. Experts say it will be small (0.25%) so I'll be using that number in the examples below. #1 - A Rate increase of 25 BPS (0.25%) translates to a $83.00 a month increase in payment. Great overview from Gobelnews.ca How much more will you be paying? Economists expect the BoC to hike rates slowly, by increments of 0.25 of a percentage point. Let’s look at the example of a homeowner with a home priced at $750,000, a minimum down payment of 10 per cent, and a 5-year variable-rate mortgage with an interest rate of 1.75 per cent and 25-year amortization. The total monthly mortgage payment for this homeowner right now would be $2,864, according to the mortgage payment calculator at RateHub, a rates comparison site. With an increase of a quarter of a percentage point that monthly payment would go up to $2,947, or $83 more per month. Now let’s look at what might happen between now and the end of next year. RBC expects the BoC’s key interest rate to climb by a full percentage point (from 0.5 per cent to 1.5 per cent) by the end of 2018. Under that scenario, the monthly payments in our example would rise to $3,205, or $341 more per month. #2 - A Rate increase of 100 BPS (1%) translates to 11% Less "Buying Power". Great overview from Tim Lucas At the lower end of the spectrum, $1,000 per month would buy you a $235,000 home at 5.0% but just a $208,000 home at 6.0%. That’s an 11.49% reduction and in some areas could make the difference between getting into a home or not, or settling for less house. #3 - Buy a home before the year ends. Rates are Rising. Inventory is very healthy. Home prices are still expected to increase. Bonus Read: 3 Crucial Reasons you Should Buy A Home Before 2017 Ends

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