Once again: Pay down your debts before rates rise
The Bank of Canada is signalling that borrowing costs could rise if economic conditions keep improving. Here are 10 reasons not to tune out this time around.
After last week's decision from the Bank of Canada, news of the possibility of rising interest rates has been steadily increasing. This article from the Globe and Mail advises Canadians on the importance of paying debts down before this change comes about.
Mortgage rates are still sitting at historic lows and are not expected to increase overnight. However, an eventual increase is inevitable, and preparing for this outcome is necessary. Canadians looking to renew or apply for a new mortgage are encouraged to take advantage of the current low rates available at a ten year term. It is also important to know the prepayment privileges associated with any mortgage. Those looking to pay off their debts faster can look into lump sum payments or increasing the frequency of regular payments.
Cutting down on debt has many other benefits, aside from saving on interest. The ability to save money for children's education, retirement or emergencies are just a few. Try using an online mortgage calculator to calculate your possible savings.
To read the full article from the Globe and Mail, click here.