News Analysis Anticipation of higher interest and mortgage rates in 2022 provides an incentive to buy now, although concerns remain about affordability of mortgage payments once rates go up in the future. The Bank of Canada has indicated that it will raise interest rates as early as the second quarter of 2022. An economic study by Desjardins, released Dec. 20, suggests that “very gradual” annual increases of 0.5 to 0.75 percent will be coming. Mortgage rate hikes are also expected, though variable rates have a more direct relationship with interest rates than do fixed rates, which tend to follow bond yields. Carleton University business professor Ian Lee, who sold mortgages at one time, says consumers may be smart to get mortgages before interest rates rise, noting that it might be even better to lock in fixed rates. However, he warns that plans don’t always pan out and may lead to …