CategoryMortgage Tips

Posted July 27, 20221 Comment Bank News

Variable Rates Go Up, Fixed Rates Come Down

If you’re reading this, you probably know by now: the Bank of Canada has been raising their benchmark rate aggressively to battle inflation. And I mean aggressively. Their rate has gone up by 2.25% in 6 months which is absolutely – wait for it – unprecedented.

As a result, variable rates have shot up. Everyone expected fixed rates to follow suit – but interestingly enough, the opposite has happened. They’ve actually gone down. Yup, you read that right: while variable rates are going up, fixed rates are going down.

Posted June 21, 20221 Comment Consumer Debt

Death, Taxes, and Interest Payments: Part 1

“Nothing in this world is certain except death and taxes.”

Benjamin Franklin said this in 1789, and it’s just as true now as it was then. There’s just one thing I’d add given that the world has changed quite a bit since the 18th century: interest payments. Maybe not as certain, but just as stressful. If I could revise the quote now, I’d make it:

“Paying interest and taxes will be the death of us.”

Posted June 9, 20221 Comment Bank News

Beware of “Friendly” Calls From Your Bank

For better or worse, Canadians have a lot of trust. In each other, in their government, in the places they eat, in the places they shop – and apparently in the places they bank. A 2020 survey found that seven out of 10 Canadians believe their banks have their best interest in mind when offering advice. Well, if you’re one of those seven out of 10 people, I hate to burst your bubble… but I have reason to believe otherwise.

Posted February 22, 2022 Finance

When Interest Rates Go Up, Do Property Values Go Down?

In 1990, Canadian house prices plummeted. Quickly too. Between March and September, property values were slashed up to 50% depending on where you lived in the country. A correction like this hadn’t happened for decades prior, and it hasn’t happened since. So why did it happen?

Posted January 27, 2022 Mortgage News

Don’t Fear the Rate Hikes

Last week, I came across an article with this headline:

“Bank Of Canada Will Raise Rates 500% This Year, To Start Within Weeks.”

Pretty scary headline right? The article claimed that there will be five rate hikes of 0.25% this year. Even worse, these hikes will start almost immediately – meaning the first hike will happen at the first Bank of Canada announcement of the year.

That announcement happened yesterday. No rate hike.