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Admiral Beez said:
www.theglobeandmail.com

Bank of Canada hikes interest rates by another half percentage point, says it is ready ‘to act more forcefully’

The increase marks the third so far this year by Canada’s central bank and the second consecutive half-percentage-point increase, taking the benchmark rate to 1.5 per cent
www.theglobeandmail.com www.theglobeandmail.com

Rates are going to steadily increase, IMO. Did everyone over extending their mortgage, credit and loc debt think the low rate party was going to continue forever?
Click to expand...

They were told by BoC that rates would not move upwards until 2023. They also ignored inflation and called it transitory which they were wrong about. Should have kept their mouths shut and raised rates last year when inflation was on the path upwards.

They lowered rates to "save" the economy. Printed a bunch of money and told people to buy, buy, buy, now they're closing the barn door and we hear the "low rates weren't going to last forever". Of course they weren't, but BoC loses credibility here. Look completely clueless.

Hopefully these rate hikes will bring down all the increases in prices for goods and services but I highly doubt it. Let's see if food prices come down, Contractors and hadymen start slashing prices. Insurance comes down. Car prices will be slashed, etc. Can't wait

Only thing that will come down are home prices and I guess gas will eventually but rate hikes will have nothing to do with that.
 
TheKingEast said:
They were told by BoC that rates would not move upwards until 2023. They also ignored inflation and called it transitory which they were wrong about. Should have kept their mouths shut and raised rates last year when inflation was on the path upwards.

They lowered rates to "save" the economy. Printed a bunch of money and told people to buy, buy, buy, now they're closing the barn door and we hear the "low rates weren't going to last forever". Of course they weren't, but BoC loses credibility here. Look completely clueless.

Hopefully these rate hikes will bring down all the increases in prices for goods and services but I highly doubt it. Let's see if food prices come down, Contractors and hadymen start slashing prices. Insurance comes down. Car prices will be slashed, etc. Can't wait

Only thing that will come down are home prices and I guess gas will eventually but rate hikes will have nothing to do with that.
Click to expand...
I’ve always been terrified of debt. We paid off the house and the car as quickly as we could and try to avoid all credit card or LoC debt. I don’t know why I feel this way, my relatives carry thousands of dollars of debt and seem to live happier lives.
 
Admiral Beez said:
I’ve always been terrified of debt. We paid off the house and the car as quickly as we could and try to avoid all credit card or LoC debt. I don’t know why I feel this way, my relatives carry thousands of dollars of debt and seem to live happier lives.
Click to expand...

They're worried, trust me.
 
If you can make more with the money then the interest rate then why worry about paying back to the bank
If you can't then you should pay back asap instead of leaving it in cash
It feels like Finance 101 but it is not that simple lol
 
evandyk said:
For the last 15 years, paying down your mortgage before investing would have been a pretty bad decision.

For the next 10 years... Who knows?
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Exactly, people who have used HELOC to BORROW even more money from their properties did very well in the last 10 ish years
We'll see
 
karledice said:
If you can make more with the money then the interest rate then why worry about paying back to the bank
Click to expand...
That’s why we fianced our new car in 2016. Five years at near zero % interest, allowing me to take the same money I would have spent on the money to instead contribute to my RSP.
 
Screenshot_20220612-152305.jpg
 
karledice said:
If you can make more with the money then the interest rate then why worry about paying back to the bank
Click to expand...
Because times change. Instead of paying off your mortgage you invest in stocks, but stocks are only worth what someone else is willing to pay you. If the value of your stocks now drops at the same time as mortgage rates rapidly rise, for many the chickens are coming home to roost.


I know I probably lost investment potential by focusing on paying off my mortgage these past two decades but I feel for myself that I've built the family circumstances to best weather the coming storm.
 
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