What’s the Trigger Rate for Your Mortgage?

Category: Academics

Understanding the trigger rate for your mortgage is crucial for homeowners, as it can determine when changes to interest rates will impact your mortgage payments. This article delves into the concept of the trigger rate and how it affects mortgage holders. It explains how trigger rates work, the relationship between the trigger rate and the Bank of Canada's key interest rate, and the potential impacts of changes in interest rates. The article also provides guidance for homeowners on how to monitor and manage their mortgage in light of trigger rate fluctuations. By staying informed about the trigger rate and its implications, homeowners can make informed decisions to mitigate risks and manage their mortgage effectively.