Bank Of Canada Holds

Earlier this week, The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. That’s good news for Canadians and specifically new buyers who are entering the fall market. So now what! Well if you have been thinking about a home purchase this fall, a pause in a rate increase is a great time to start looking as it will give added incentive to the real estate market. The break in rate hikes adds confidence in the market for sellers, people who might be holding off putting their homes on the market will use this time to list their property, giving you access to inventory.

And if you are holding off and want to save a little more through this time, here are a few tips to deal with the interest hikes, lets hope this is all behind, but being prepared is key.

The key word here is DEBT. get rid of the debt and the future is bright, and when you are ready for that purchase, your bank account will be ready too.

Preparing for a change in Interest rates.

  • Reduce your personal expenses so you have more money to pay down your debt.
  • Pay down the debt with the highest interest rate first. And keep going…
  • Consolidate your high interest debts, such as credit cards, and work into a loan with a better interest rate.
  • Poke away even 50$ a month into a TFSA account. You will be so happy you did as you watch your savings grow without doing much.
  • Do your research and find a better-rate mortgage if currently owning a home.
  • Using Format