Variable mortgages, personal lines of credit, line for your SME, car loans… Today’s key rate hike will hit you one way or another, and cause your payments to (further) increase.
• Read also: Bank of Canada: 8th key rate hike in less than a year?
• Read also: Increase in the key rate: that’s enough!
The Bank of Canada raises its key rate again, by a quarter of a point, to 4.50%. It’s the 8e consecutive increase since March 2022.
- Listen to the Maréchal-Dumont meeting broadcast live every day at 4:05 p.m. via QUB-radio :
“I’m starting to find it hard. Frankly, it’s getting expensive. When you say that you pay more interest than capital on a house, it’s not going well, ”says Daniel Matte, who digests this new increase badly. “It hurts the wallet a lot and it’s more complicated. Even if we have good salaries, the cost of living is so high, it becomes hard just to live normally, ”said the man who works in construction and who holds a variable rate mortgage.
On December 7, the key rate went from 3.75% to 4.25%, an increase of 50 percentage points.
- Listen to Yves Daoust’s business segment broadcast live daily at 9 a.m. 35 via :
Finally a respite?
“It’s 425 basis points, since January last year. On a $300,000 mortgage, that’s $12,750 annualized, to be budgeted for. It is enormous. I think this confirms that we need to have measures that are targeted so as not to stimulate the period of inflation,” reacted Fred Beauchemin, spokesperson for the QLP in matters of finance, to the announcement of the increase in the key rate, on the sidelines of a QLP caucus in Lac-Beauport.
People will have a break in 2023, believes economist Sébastien Mc Mahon at iA Financial Group. “The bar is high for another hike. I think that’s the last for 2023, that’s the Bank’s base case,” he said.