The Prospective Outlook for Interest Rates in Canada.

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.