Talk of rising interest rates no reason for home owners to panic

Talk of rising interest rates tend to make homeowners jittery and, if you have a big mortgage, you may be feeling extra nervous, but experts say not to panic.

Peter Veselinovich, vice-president of banking and mortgage operations with Investors’ Group in Winnipeg, stated that while rate increases are expected, any change will not be as dramatic as the Bank of Canada announced earlier this month.

A change in interest rates would translate to higher mortgage payments, although that would only apply to people with variable rate mortgages, since fixed-rate mortgages don’t change for the duration of their term.

Most home owners currently have fixed-rate, five-year mortgages. The mortgages come with the peace of mind of knowing what your payment will be for the duration of the term.

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