Did the Bank of Canada interest rate that affects variable rate mortgages just go up?
[Yes, it did.]
And yes it might [affect your loans and debts], including a variable rate mortgage if you went that route. I sincerely hope it isn't enough to put you under water. If that is the case, I'm sorry to hear it and it won't matter what else I say because your situation is your situation.
But as far as the rate increase itself goes, let's not be dramatic: it's still much lower than historical norms. And far from the worst it has ever been
This becomes pretty readily apparent when you look at the history of the interest rate, as available in [easily readable format on tradingeconomics.com]. Click on the 'Max' timeframe and check out where it was before 1995.
Sure, there are lots of risk factors in the market right now. There always are. This interest rate increase shouldn't spark a massive economic shut-down, but consumer sentiment can be a fickle thing. [As I suggested yesterday], skewed perceptions in the market can themselves create the adverse conditions that buyers fear.
Until they make a massive interest rate hike, 'keep calm and carry on' as the saying goes. Feel free to keep an eye on the news, but be careful not to buy into excessive media hype. Every little increase is a "hike" or "jump" - there are not small upward changes. Such drama sells news, but it's not always a good basis for financial decisions.
If you're concerned about your variable rate mortgage going up more in the future, talk to your [mortgage professional] about the merits of locking in the rate, and maybe even refinancing to pay off other higher interest debts. You'll typically get a higher fixed rate, but it will be at least one more stable number you can plan on.