Bank of Canada rate up by 0.25% and personal debt levels down.

BANK OF CANADA RATE UP

July 20th, 2010….an interesting day.  This was the 5th of 8 scheduled Key Interest Rate announcements… No real surprises… the Key rate went up by 0.25%…. the second increase this year…

The new Bank Prime rate is now 2.75%.    Variable rate borrowers will see a 0.25% increase in their mortgage rate… but don’t feel too bad… your mortgage is probably just over 2.00%….. that’s much lower than even the lowest 5 year fixed rate mortgage of 3.69% which was being offered mid last year….and recent reports are calling for a very slow and gradual interest rate hike…click here for the latest.

PERSONAL DEBT LEVEL DOWN

Remember the reports about the high personal debt levels that Canadians had?  We were spending like fools… according to many “Experts”… And bank on May 13, I questioned these reports….

Now we are seeing that Canadian Personal Debt levels are down….Come on… we didn’t change overnight.. we  have just been taking advantage of these record low rates to invest or spend wisely…and what’s wrong with that?..  see the latest stats…