Bank of Canada says prime lending rate could hit 4.5% by 2026

The Bank of Canada stated people who borrowed heavily to buy a home when mortgage rates were low last year could see their monthly payments increase by up to 45 percent when their mortgages come up for renewal in 2026.

The central bank has already raised its rates by a full percentage point this year and more increases are set to follow as inflation continues to surge.

It’s forecasting rates of around 4.5 percent in four years’ time.

That would push up payments by between 25 percent for those with fixed mortgages, to as much as 45 percent for those holding variable-rate mortgages.

– with Vista Radio newswire