30 Aug Canada’s interest rate prediction
Posted at 12:05h
in Media
Experts predict the Bank of Canada will hold its key interest rate at 2.25%. Financial Planner Kelly Ho joins Global News to discuss the impact on homeowners and warn variable-rate mortgage holders about hitting critical trigger rates.
In this segment from Global News Morning BC, host Angela Bower interviews Kelly Ho, a Certified Financial Planner with DLD Financial Group, ahead of the Bank of Canada’s upcoming interest rate announcement.
Key Insights & Discussion Points
- The Prediction: Despite recent fluctuations or temporary spikes in inflation data, the general consensus among financial experts is that the central bank will keep rates steady at 2.25% rather than issuing a cut or a hike.
- Variable-Rate Mortgage Guidance: Kelly Ho stresses that homeowners on variable-rate mortgages need a financial contingency plan to withstand any unexpected changes. She breaks down the two main types of variable mortgages:
- Fluctuating Payments: Mortgages where the monthly payment rises or falls automatically with interest rate changes.
- Fixed Payments (Trigger Rates): Mortgages where payments remain flat, but borrowers must watch out for hitting their “trigger rate.” Passing this threshold means monthly payments no longer cover the accumulating interest, causing the bank to automatically extend the mortgage’s amortization period.
- Financial Advice for Homeowners: Ho advises clients to look at their personal risk tolerance and ask themselves, “What keeps you up at night?” If a homeowner feels secure with a variable rate, she recommends using the extra funds saved during lower-rate periods to either build an emergency cushion or aggressively pay down the principal balance.
GLOBAL NEWS
PUBLISHED AUG 30, 2026