Readying for the rate hike
What will interest rate hikes mean for Canadians?
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What will interest rate hikes mean for Canadians?
The Bank of Canada is still looking push interest rates higher, and the Financial Post’s Terry McBride has put together a handy little primer on what it means for Canadians.
Retirees drawing income from GICs and bonds will see their incomes go up, while borrowers, obviously, will feel a renewed pinch. Homeowners with variable rate mortgages will be spending more to pay down their debt. Renters aren’t off the hook either, as landlords with mortgaged properties may raise rents.
Bond investors will see decreased revenue, but as always, diversification is key—if all your bonds aren’t coming due at the same time, you’re afforded more protection from fluctuating rates.
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