What the Bank of Canada's latest rate hike means for mortgage holders

Canadians who watched the cost of taking out a mortgage steadily increase over the last year were dealt another blow when the Bank of Canada upped its interest rate to 4.5 per cent Wednesday. Here's a look at what the interest rate hike will mean for the mortgage sector.

The hike is the eighth in less than a year and was accompanied by the central bank saying the rate will likely remain at 4.5 per cent unless Canada's stubbornly high inflation rate doesn't fall to its two per cent target.

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.

Here's a look at what Wednesday's announcements will mean for the mortgage sector.