​As a consumer, understanding the APR (Annual Percentage Rate) is crucial when it comes to your mortgage and other loans. APR is a percentage that represents the total cost of borrowing money over a year, including interest and fees. It is important to understand this rate because it can greatly impact your finances.

Firstly, APR helps you compare loan offers from different lenders. For example, if you are looking at two different mortgage offers with different interest rates and fees, the APR can help you determine which one is more affordable in the long run. It gives you a more accurate picture of the total cost of each loan.

Secondly, knowing your APR can help you budget and plan for your payments. If you only focus on the interest rate, you may not be aware of all the other fees associated with your loan. By understanding the APR, you can calculate exactly how much you will be paying each month and over the life of the loan.

Thirdly, APR can help you avoid hidden fees and charges. Some lenders may advertise low interest rates, but have high fees that are not immediately apparent. By looking at the APR, you can see the total cost of borrowing money and avoid being blindsided by unexpected charges.

Finally, understanding your APR can help you save money in the long run. By choosing a loan with a lower APR, you can save thousands of dollars over the life of the loan. This can free up money for other expenses or investments.

In conclusion, understanding APR is crucial when it comes to your mortgage and other loans. It helps you compare offers, budget for payments, avoid hidden fees, and save money in the long run. Make sure to take the time to understand your APR before signing any loan agreements.

Below is a brief overview of the current status of interest rates:

1. The Bank of Canada has raised its short-term policy rate to a 22-year high of 4.75% due to strong household spending and high core inflation. (Bank of Canada Hiked Rates Over Alarm of Household Spending)
2. Economists anticipate further increase in interest rates at next month's policy meeting due to recovery in housing market and tight labor market conditions. Bank of Canada’s Beaudry Sees Signs of New Era of Higher Interest Rates)
3. Inflation in April accelerated for the first time in 10 months, expected to ease to 3% this summer. (Markets eye more BoC rate hikes )
4. The Canadian economy grew at an annualized rate of 3.1% in the first quarter, likely accelerated further in April.

Here are some solutions to help you manage higher interest rates:

1. If you have some time left in your mortgage term, you can get in touch with your lender to secure a fixed rate. This could help you avoid any fluctuations in your mortgage payments and provide you with a sense of stability.


2. One option to potentially reduce your monthly payments is to refinance into a longer amortization period. This can provide some financial relief in the short term, but keep in mind that it may result in paying more interest over the life of the loan. It's important to carefully weigh the pros and cons before making a decision.


3. Consider completing a comprehensive financial clean-up and consolidating your debts. Eliminate high-interest loans that may be depleting your finances and reducing your monthly cash flow.


4. Consider taking out a line of credit while the value of your property is still high. This can provide you with financial flexibility for unexpected expenses or to weather any market instability until conditions improve or interest rates decrease.


5. Let's conduct a complimentary financial review together to identify potential areas for saving money.

Schedule a meeting with me.

​Remember: One way to achieve financial stability is by prioritizing saving over earning.