For the 13th consecutive time there is no change to report regarding the Bank of Canada’s prime rate. This came as no surprise to economists and observers but of note was the rosier picture being painted of the Canadian economy. In the last paragraph of their press release the BoC indicated that the time for an increase to the prime rate may come sooner than expected if the situation here in Canada and abroad continues to improve. You can read the entire press release here.
What Does This Mean To Me?
If you have a variable rate mortgage or line of credit your interest rate (3.00%) and monthly payment won’t change.
How Should I Position Myself Going Forward?
Household debt was targeted in the Bank of Canada’s press release as Canada’s biggest economic risk. With interest rates likely to rise in the next 12 to 18 months now is the time to seriously focus on eliminating your consumer debt.
Having the right tools can make the debt elimination process more manageable. We have recently partnered up with a debt elimination software tool called Interest Blocker which is available for free to all of our clients and readers of my blog. If you would like to get set up for free call or email me to take advantage of this great tool.
Finally, if you are concerned that you won’t be able to manage your debt when interest rates increase give us a call to review your situation. We can help you determine if a debt consolidation into your mortgage is right for you.
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