The Bank of Canada hiked its target rate by 25 basis points to 3.5% and hinted at “some modest further increase in the policy interest rate”. Major banks have promptly increased the prime lending rate to 5.25%. The bank has increased interest rates by 1% in just the past five months.

Long-term interest rates are still low and might be a better option for a new mortgage. Invis (a mortgage broker), for example, is offering a 5-year fixed rate mortgage at 4.99% and even a 10-year fixed rate at 5.33%.