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This interest rate hike will not affect your monthly Debt Management Program, Consumer Proposal or Bankruptcy payments.
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You may be affected if you have consumer debt such as credit cards, lines of credit, payday loans, installment loans etc.
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If you have a variable mortgage interest rate, your monthly payment will increase. As an example, if you have a $400,000 mortgage, you may pay approximately $600 more a year.
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Purchasing a vehicle may also be more expensive.
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This is good news for you if you have savings and investments since this is the highest that interest has been since 2008.
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This increase in interest rate will not affect you if you have a fixed mortgage.
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If your mortgage is up for renewal however, you will be affected by this increase.
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This is good news for seniors who depend on interest income to fund their golden years (retirement).
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Hopefully. this interest rate increase will motivate Canadians with debt to take action towards being debt-free.
Please feel free to reach out to me if you have any questions.