9 things you need to know about the recent interest rate hike by the Bank of Canada

This is a brief summary for my clients and potential clients to clear up some confusion and help you to understand how this interest rate hike may impact you.

  1. This interest rate hike will not affect your monthly Debt Management Program, Consumer Proposal or Bankruptcy payments.

  2. You may be affected if you have consumer debt such as credit cards, lines of credit, payday loans, installment loans etc.

  3. 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.

  4. Purchasing a vehicle may also be more expensive.

  5. This is good news for you if you have savings and investments since this is the highest that interest has been since 2008.

  6. This increase in interest rate will not affect you if you have a fixed mortgage.

  7. If your mortgage is up for renewal however, you will be affected by this increase.

  8. This is good news for seniors who depend on interest income to fund their golden years (retirement).

  9. 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.