The Bank of Canada increased its interest rate to 1.25% from 1.00%.

How will this effect mortgage holders?

All six major banks have raised their posted five-year, fixed-rate mortgage rates to 5.14 per cent from 4.99 per cent.

Mortgage costs and income required

Housing typeMLS® HPI Benchmark Price, 2017PTTTotal costMortgage loan
Detached$1,605,800$30,116$1,635,916$1,226,937
Attached$803,700$14,074$817,774$613,331
Apartment$655,400$11,308$676,708$507,531

 

Housing typeMonthly cost before rate increase (P&I)Monthly cost after rate increase
Detached$7,128.94$7,234.02
Attached$3,563.67$3,616.20
Apartment$2,948.94$2,992.40

 

Housing typeAnnual income required before rate increaseAnnual income required after rate increaseMedian Total Household Income, 2016
Detached$285,158$289,361$74,266
Attached$142,547$144,648$74,266
Apartment$117,957$119,696$74,266

 

Mortgage terms before rate increase: 75% loan, 25% downpayment, 25-years (300 months) amortization; interest rate: 4.99%

Mortgage terms after rate increase: 75% loan, 25% downpayment, 25-years (300 months) amortization; interest rate: 5.14

Sources
Bank of Canada, Policy interest rate
REBGV Stats Package as at December 31, 2017
Statistics Canada, 2016 Census, Census Profile for Vancouver CMA