Jul 15, 2022
Home Economics: How rate hikes will affect you; Giving fixed income a second look
, BNN Bloomberg
Canadians were not properly budgeted for these kind of rate hikes: Expert
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Giving fixed income some more respect
While much of the analysis following the Bank of Canada’s interest rate hike is focused on how it will increase borrowing costs, Personal Finance Columnist Dale Jackson points out there’s an upside not many people are talking about – fixed income yields are going up. That’s good news for older investors that require more safety in their portfolio and it’s prompting Jackson to call on more investors to take a second look at fixed income investments.
Mortgages, loans, spending: Gauging the impact of rate hikes
While we’re on the topic of increased borrowing costs, here’s a breakdown of how higher interest rates will impact your mortgage, loans and your spending. Shortly after the rate hike, all big six Canadian banks increased their prime lending rates to 4.70 per cent. Prime rates are tied to a variety of loan products including mortgages, auto loans and home equity lines of credit.
Canadian housing taking a hit in this rising rate environment
There’s more evidence of how higher interest rates are rippling through Canadian housing. The latest data from the Canadian Real Estate Association showed home prices in June fell for a third straight month. The last time the real estate market saw a three-month streak of declines was back in 2019. Meanwhile, Royal LePage cut its forecast for home price growth in 2022 and CMHC said there’s a chance the Canadian economy will be in a recession by the end of this year.
Some Canadians cutting back on necessities amid high inflation: Survey
A survey by MNP found 27 per cent of respondents said they were cutting back on basic life necessities like food, hydro and housing as the cost of living continues to skyrocket. “No matter where Canadians turn, there is no reprieve; housing is more expensive, driving a car is more expensive, food is more expensive,” said MNP President Grant Bazian. He also gave a gloomy outlook for Canadians, saying things will likely get worse before they get better.
Talk to your kids about money early in life: Experts
While parents might be inclined to keep financial matters hidden from their kids, experts say that could end up doing more harm than good. Personal finance educators tell The Canadian Press introducing and talking to your kids about money at an early age can help them develop a healthier relationship with money in their future – especially since parents shouldn’t rely on the school system to adequately teach kids about finances, the experts said.
While much of the analysis following the Bank of Canada’s interest rate hike is focused on how it will increase borrowing costs, Personal Finance Columnist Dale Jackson points out there’s an upside not many people are talking about – fixed income yields are going up. That’s good news for older investors that require more safety in their portfolio and it’s prompting Jackson to call on more investors to take a second look at fixed income investments.
Mortgages, loans, spending: Gauging the impact of rate hikes
While we’re on the topic of increased borrowing costs, here’s a breakdown of how higher interest rates will impact your mortgage, loans and your spending. Shortly after the rate hike, all big six Canadian banks increased their prime lending rates to 4.70 per cent. Prime rates are tied to a variety of loan products including mortgages, auto loans and home equity lines of credit.
Canadian housing taking a hit in this rising rate environment
There’s more evidence of how higher interest rates are rippling through Canadian housing. The latest data from the Canadian Real Estate Association showed home prices in June fell for a third straight month. The last time the real estate market saw a three-month streak of declines was back in 2019. Meanwhile, Royal LePage cut its forecast for home price growth in 2022 and CMHC said there’s a chance the Canadian economy will be in a recession by the end of this year.
Some Canadians cutting back on necessities amid high inflation: Survey
A survey by MNP found 27 per cent of respondents said they were cutting back on basic life necessities like food, hydro and housing as the cost of living continues to skyrocket. “No matter where Canadians turn, there is no reprieve; housing is more expensive, driving a car is more expensive, food is more expensive,” said MNP President Grant Bazian. He also gave a gloomy outlook for Canadians, saying things will likely get worse before they get better.
Talk to your kids about money early in life: Experts
While parents might be inclined to keep financial matters hidden from their kids, experts say that could end up doing more harm than good. Personal finance educators tell The Canadian Press introducing and talking to your kids about money at an early age can help them develop a healthier relationship with money in their future – especially since parents shouldn’t rely on the school system to adequately teach kids about finances, the experts said.
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