Posted at 9:00 am
For our part, we have been well advised and have 4 years left at a fixed rate of 1.84% on a $290,000 mortgage. However, I fear renewal and our solvency if inflation continues at this rate. With three kids everything is expensive and every little unexpected strains the budget despite a family salary of $110,000.
It will hurt. My pension is frozen for another year and a half. We will have to make decisions that we didn’t think we would have to make. Extras will suffer, like restaurants, shows, excursions… We will do less!
Jean Pierre Gagne
With a floating rate on recently purchased land, we have to delay construction of the chalet as we also used the home equity line of credit for the initial payment. I’m putting a little less to the side than I used to so less on RRSPs/RESPs, I have a triplex and the rents haven’t gone up as my family lives there so I’ll cover any additional costs.
[Nous sommes] allocated for the purchase of a car. We postpone until later. We’re retiring in 2025, our mortgage is expiring, and living in our house with the new interest rates is out of the question. You must sell.
Totally agree with a rate hike. As a retiree, relying on my savings, the interest rate has to be equal to or higher than inflation or I’m a loser.
Jacques Bertrand Pichette
It doesn’t affect our lifestyle or habits at all. Except that I know it will stay that way for a long time. […] To keep track, last year I changed all of my floating rates from 1.5% to 1.70%. Thus, the increase in rates will not be felt by us for four years.
No, a rate hike will not affect my budget. I’m in the middle class and every year I accompany hundreds of clients in their financial lives in the workplace. We just consume too much. Knowing how to save money, reduce consumption of unnecessary items, keep subscriptions and bills to a minimum, get around by bike, drive slower, don’t rejuvenate every three or four years, choose affordable restaurants, drink less alcohol, don’t smoke and pays off debt quickly… and so on. There are enough ways to save. You just have to have the mental click that needs are unlimited and resources are not. Let’s start changing our behavior and financial stress will go away on its own in most cases!
Jean Francois Levesque Martel
For my part, I’m not feeling the direct impact of the recent increases, but rather the side effects. I don’t have any major investments or a mortgage but I’m a 31 year old self employed woman just starting up a business in a rural area so I don’t have public transport. In a precarious situation, inflation makes life very difficult. I even have to use up the meager cash I’ve saved over the last few years to pay for everything that makes the dream of one day buying a property even more imaginative. I have to say that I also have parents who help me financially, who lend me money when I can’t pay my rent. I don’t know how I would have gotten there without their support.
Very satisfied, because our investments are now paying off. A little consideration for those who have looked a little big when buying a home, vehicle or chalet.