The Bank of Canada has raised its benchmark interest rate to 1.75 per cent up from 1.5 per cent. The bank has already raised that key rate four times since the summer of 2017.
Thanks to years of access to cheap money, household debt has ballooned in Canada. Now that interest rates are rising, there are mounting concerns over how people will continue to pay down mountains of debt.
Out of 1,000 Canadian homeowners surveyed online between Oct. 5 and 11, almost three-quarters of those with debt on their home — mainly mortgages — confessed they're worried about rate hikes.
It won't take much for most of them to feel the pinch: 58 per cent of respondents said an increase of more than $100 in their monthly debt payments would force them to change their spending habits to make ends meet.
If you have questions or concerns about increasing interest rates and how this affects you, contact us today.