Although the Bank of Canada held interest rates steady in their January 26, 2022 announcement, rates are expected to increase in 2022. When that happens, will you be financially ready for higher borrowing costs? Could you afford to pay an extra, say, $50-$100 a month towards your debts? On today’s podcast, Doug Hoyes and Ted Michalos breakdown how a rate hike would impact your finances, whether it’s better to get a variable or fixed loan, and why it’s important to prioritize debt repayment in a low-rate environment. Tune in for a great discussion.

Links:

Rising Interest Rates and Debt – What Can You Do? https://www.hoyes.com/blog/rising-interest-rates-and-debt-what-can-you-do/

Bank of Canada Policy Interest Rate https://www.bankofcanada.ca/core-functions/monetary-policy/key-interest-rate/

Understanding the Bank of Canada Policy Interest Rate: https://www.bankofcanada.ca/2021/04/understanding-policy-interest-rate/

Bank of Canada Mandate: https://www.bankofcanada.ca/publications/annual-reports-quarterly-financial-reports/annual-report-2020/mandate-and-planning/#:~:text=The%20Bank%20of%20Canada%20is,committed%20to%20a%20better%20Canada

Statistics Canada, Consumer Price Index Graphic 627-m2022004-eng.pdf"> https://www150.statcan.gc.ca/n1/en/pub/11-627-m/11-627-m2022004-eng.pdf

Butler Mortgage, Mortgage Rates https://www.butlermortgage.ca/rates/

Episode 383, Predictions for Consumer Debt Coming Out of the Pandemic https://youtu.be/LCE6EkOwi8E