The interest rate increase is bound to weigh on prospective homeowners and mortgage holders because mortgage rates tend to move in tandem with interest rate changes. The danger becomes when these people hit their trigger point — when monthly mortgage payments are no longer sufficient. How much can the average variable mortgage holder expect their mortgage to rise by as a result of these changes? Should I switch between a variable rate and fixed rate mortgage? "In a rising rate environment, many people are often opting away from variable rate mortgages," said Zlatkin.
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