January 27, 2023

The Queens County Citizen

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Make way for readers | Key rate hikes: Fears for the future

Make way for readers |  Key rate hikes: Fears for the future

The prospect of a 75 basis point hike in the key rate in July, as forecast by RBC and BMO economists, is worrying readers. Press Those whose budgets have been disrupted and who consider postponing or canceling certain purchases. Others, better advised or more fortunate, cross their fingers hoping not to be too affected, at least for the moment.

Posted at 9:00 am

Vincent Laurin

Vincent Laurin

For our part, we advised well and we have 4 years left on a $290,000 mortgage with a fixed rate of 1.84%. However, if inflation continues at this level, I fear for our ability to recover and pay. With three kids, everything is expensive and even with a family income of $110,000, every little contingency puts a lot of strain on the budget.

Dominic Aubin

It hurts. My pension has been stopped for another year and a half. We have to make choices that we don’t think we should. Extras like restaurants, shows, trips get hit…we do less!

Jean-Pierre Gagne

With the variable rate on the recently purchased land, we had to delay building the chalet because we also used a home equity line of credit for the down payment. I put in a little less than before, so less in RRSPs/RESPs, I have a triplex and the rents haven’t gone up because my family lives there, so I cover all the extra expenses.

Martin Poirier

Totally agree with the rate hike. As a pensioner relying on my savings, the interest rate must be equal to or higher than inflation, otherwise I would have lost.

Jacques-Bertrand Pichet

It does not affect our lifestyle or habits at all. I know it will last a long time. […] To keep track of my things, last year I set all my variable rates from 1.5% to 1.70%. For four years like this rate hike will not fall on us.

Philippe Fournier

No, the rate hike will not affect my budget. I am middle class and I work with hundreds of clients every year on their financial lives. We consume too much. Save money, reduce consumption of unnecessary things, keep subscriptions and bills to a minimum, cycle, drive slowly, renovate every three or four years, choose affordable restaurants, drink less alcohol, don’t smoke and pay off your debts quickly…etc. There are plenty of savings opportunities. You must have the mental click that needs are limitless and resources are not. Let’s start by changing our behaviors and financial stress will disappear by itself in most cases!

Jean-Francois Levesque-Martel

For my part, I will not experience the direct effects of the latest increase, but rather the collateral effects. I don’t have a lot of investments or a mortgage, but I’m a 31-year-old self-employed woman starting a business in a rural area, so I don’t have access to public transportation. In an uncertain situation, inflation makes life very difficult. Paying for everything will also eat into the little cash I’ve saved up over the past few years, making the dream of one day buying a property even more exciting. I have to say that I also have parents who help me financially by taking out loans when I can’t pay my rent. I don’t know how I would have gotten there without their support.

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Miriam Lefebvre

Very happy, because our investments are now paying off. A little idea for those looking a little bigger when buying a house, vehicle or chalet.

Michael Caron