Page 33 - Sports Energy News, Cornwall, Issue No 127
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www.sportsenergynews.com Issue #127 August 2023 33
Issue #127 August 2023
www.sportsenergynews.com
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Johnson - Continued from page 32 rate hikes. But those with static- economist Andrew Grantham back to target” than the Bank
payment variable-rate mortgages wrote last week. currently projects.
“If you’re a variable-rate holder
are facing another kind of problem.
and your mortgage was at For the Bank of Canada to feel An additional rate hike would
Fixed-payment variable rates,
prime – 1% last year, you were which are offered by banks such compelled to deliver yet another bring the overnight target rate to
paying $397.39 (per $100,000 as TD, BMO, and CIBC, mean quarter-point hike at its September 5.25%, implying a prime rate of
of mortgage).” “Now, you’re the borrower’s monthly payment meeting, Grantham says the 7.45%. The last time Canadian
paying $651.74 on a 25-year economy will have to under- borrowers saw prime rate that high
remains the same, while the portion
mortgage, a difference of $254.35 perform compared to the Bank’s was in 2000.
going towards interest costs rises
(64% increase), and on a 30-year latest forecasts, and inflation will THANKS FOR KEEPING
and the amount going towards
amortization your difference is principal reduction decreases. have to “make quicker progress BUSINESS LOCAL
$264.86, a 77% increase.”
This has resulted in the average
Given an average mortgage size being Thunder Rolls to
amortization period
of roughly $312,000, according extended, in many cases to beyond
to figures from Equifax, that 35 years, which has caught the Championship Final
translates to roughly $820 more in
attention of regulators.
interest each month for the average you the goaltender is the club’s MVP.
borrower. As of May, prior to the last two Up front, Hawi Francis leads a talented
Bank of Canada rate hikes, a report group, and when the tall forward is on,
Despite the sharp rise in borrowing
from Desjardins estimated that he can be unstoppable. The Thunder
costs as a result of ten Bank of
more than three quarters of these dispatched the always-tough Clarington
Canada interest rate increases, By Thom Racine
borrowers had already reached Green Gaels in three games, winning the
variable-rate borrowers have so their trigger point, meaning all first round series and earning a date with
far been “extremely resilient.” defending National Champion Nepean
of their monthly payments were
For example, some borrowers going towards interest costs. Knights. The hard-fought series went
to the Thunder, roaring to an overtime
have locked into a fixed rate early, The payment shock for these victory in game four. The eastern final
while some have refinanced to borrowers will come as their ou can use all of the stormy cliche’s saw the Thunder beat Orangeville in four
extend their amortization and Yavailable, but it truly has been a games, (although they never lost with
mortgages come up for renewal,
decrease their overall payment, thunderous first season under the new Orangeville’s win coming after a protest
when their banks will adjust their moniker “Thunder” for Akwesasne’s
while others who may have used in game one; the Thunder had used what
monthly payments to get them Junior B lacrosse team. There were
funds to invest in the stock market back on their originally contracted some early setbacks and win-one lose- was deemed to be an illegible player,)
or other investment vehicles have amortization schedule. one efforts, but as the season rolled to win the Colby Hancock Memorial
deleveraged by reducing their along, the Thunder got louder and Trophy, and that has set up an Ontario
Junior B championship series with the
overall mortgage and/or debt load. Could prime rate reach 7.45%? louder. Midway through the season, the Six Nations Rebels, with a trip to the
Essentially, they’ve done whatever What could start to really wreak 500 team began to believe in themselves Founders Cup on the line. The Thunder
and played a more disciplined style,
it takes to create some level of havoc on current variable-rate while never giving up their end of the will play game three at home on Sunday
predictability and management of mortgage holders are any further floor. Stout defence and a punishing August 6th, and Monday August 7th if
their monthly cash flows. What we hikes beyond this point. style kept would-be attackers at bay. necessary. The two teams are evenly
matched, and it should be a great series.
have not seen to date is property While the Bank of Canada has If there was an offensive attack Saka After the season it has been, don’t count
owners selling their properties signaled that any future moves Thompson was absolutely stellar in out the Akwesasne Thunder to keep on
because they can’t manage the will be heavily dependent on goal. In fact, most observers will tell rolling….
payments. economic data that comes out in
Trigger rates and extended the coming weeks, some believe an
amortizations additional quarter-point rate hike
in September remains possible.
The increases have led to higher
monthly payments for those “The continued hawkish tone
with adjustable-rate mortgages. within [the Bank’s] statement also
The Bank of Canada estimates suggests that another move could
these borrowers have seen their well be seen in September, although
payments surge more than 50% we suspect that this will ultimately
as of May—prior to the last two prove to be an overshoot,” CIBC