Guide to Homebuying
Purchasing your first home is no easy task. Download this guide as your one-stop go-to resource for all things home buying.
On January 25, 2023, the Bank of Canada announced an additional increase in its Policy Interest Rate, with a hike of 0.25%, bringing the current rate to 4.5%.
Here are the key things you should know:
To combat inflation. When inflation gets too high (when too many dollars chase too few goods), the Bank of Canada may choose to increase interest rates. This is done to encourage saving rather than spending and help improve the balance between supply and demand.
Rate increases will make borrowing more expensive, affecting interest costs for mortgages, home equity lines of credit, credit cards, student debt, and car loans.
We’re here to help you navigate this. Contact your local credit union today.
If you’re interested in learning more about interest rates, check out anatomy of an interest rate and the low-down on interest rates.