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How do increases and decreases in the policy interest rate affect my finances?

We use the Bank of Canada’s policy interest rate to establish the interest rates of our products such as: 

  • Mortgages and personal loans 
  • Lines of credit 
  • Savings accounts 
  • Guaranteed Investment Certificates (GICs)


When the policy interest rate increases or decreases, so does the interest rate of your products. 


Here’s how an increase in the policy interest rate affects a mortgage: 


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