'

Bank of Canada Lending Increase: What's the Impact?

Monday Jan 22nd, 2018

Share

You may have seen the news recently that the Bank of Canada (BoC) has yet again, raised its key lending rate by a quarter point to 1.25 percent. This is the third increase since record lows last summer. Since the BoC announcement, our five biggest banks have followed suit and hiked their prime lending rate to 3.45 percent. This rate affects both debt and savings, in different ways of course. Savers can rejoice, you’ll get a little more on your hard earned (and put away) dollar. However, debt will cost us more.

 

How much more you ask? Here’s a nifty calculator to help you estimate just how much more interest you will pay on your debt load. You can also find a bit more of an explanation on the BoC hike. Check out CBC online here.

 

If you would like professional advice, reach out to us and we’d be happy to share our network of trusted experts with you.