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Is the Bank of Canada's Rate Hike Really a Cause for Concern?

The Bank of Canada boosted the interest rate to 0.5 percent last week, an increase of 0.25 percent. Apart from the high gas costs, this has been the topic of conversation across the country. The rate of headline inflation has lately risen to a 30-year high of 5.1 percent, causing concern not only in Canada but throughout the world.<br><br>To know more visit: https://savemax.com/

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Is the Bank of Canada's Rate Hike Really a Cause for Concern?

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  1. Is the Bank of Canada's Rate Hike Really a Cause for Concern? www.savemax.com

  2. The Bank of Canada boosted the interest rate to 0.5 percent last week, an increase of 0.25 percent. Apart from the high gas costs, this has been the topic of conversation across the country. The rate of headline inflation has lately risen to a 30-year high of 5.1 percent, causing concern not only in Canada but throughout the world.

  3. As the fear of a pandemic fades, we witness a restoration of spending power in Canadian families, bolstered by a healthier labour market, a rebound in the hotel and tourism industries, a better supply chain, and the lifting of Covid preventive limitations.

  4. With all of these considerations in mind, the Bank of Canada's decision to raise interest rates was unavoidable at this time. Furthermore, the decision to take a tiny step toward interest rate normalisation was required to re-energize the economy. This is only the beginning; if the economy strengthens, Canada will see numerous rate rises this year.

  5. By the end of 2022, many experts at the top five banks expect at least four interest rate hikes. The rate increase on March 2nd, 2022, will be the country's first since 2018. As a result, Canada's record-breaking low-interest period, which fueled the housing market but did not stifle house purchasers' aspirations, has come to an end.

  6. What does this indicate for homebuyers who already have a mortgage? If you are on a fixed rate, the monthly payment does not change as fixed rates are not affected by overnight lending interest rate hikes.

  7. What's the bottom line, then? As seen in the previous case, the effect of a rate rise on the monthly mortgage payment is negligible and not cause for alarm. The rate rises are insignificant in contrast because you are approved for a mortgage at 5.25 percent (bank stress test). Of course, if you compare variable rates to fixed rates in the current situation, variable rates are still the best option.

  8. To know more visit: • Address: 6755 Mississauga Rd., Mississauga, ON Canada, L5N 7Y2 • Tel: +1 9054597900 • Email: info@savemax.com • Website: https://savemax.com/

  9. Thank You For Your Concern www.savemax.com

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