The latest interest rate increase shouldn't have a huge impact on mortgage holders according to the Sarnia Lambton Real Estate Board.
Responding to the latest quarter-point increase to 1.75 per cent by the Bank of Canada, President Steve Park said you may have to cut back on coffee to pay for it.
"From a practical point of view, on a $100,000 house that increases your monthly payment by $20, basically $21 a month," said Park. "For a lot of people that won't be a huge increase. It will certainly be four less coffees a month."
Park said whenever the rates go up, it acts as an incentive for those looking to buy.
"Whenever we see the Bank of Canada change the rate, it's always a positive for real estate," said Park. "If it goes up, people tend to buy a little quicker thinking it's going to continue to go up and if it drops, obviously it's for the benefit."
It's the fifth quarter-point increase delivered by the central bank since the summer of 2017.
The bank omitted the word "gradual" from its explanation on how it will approach future rate increases this time, which has led to speculation that future hikes may come faster than the market had expected.
