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: 

• Have a fixed rate? Your loan won’t be affected by an increase. Your rate will be reviewed for renewal at the end of the current term. 
• Have a variable rate? Your rates and payments will both increase. 
• Looking to buy property? An increase could affect your ability to do so. Calculate your budget and borrowing capacity before making your purchase. 

 

Want to learn more? 

• Read our article on the impact that an increase in the policy interest rate can have on your finances. 
• Discuss your projects and finances with one of our advisors.