The benifits and downsides of higher mortgage rates

If you have a mortgage or loan, rising interest rates are something to keep an eye on. 

Interest rates in Canada have been low for some time now. Consider that the interests rates in 1990 were roughly 10 times what they are today! And they were even higher in the 80's.

Higher interest rates make loans and mortgages more expensive.  Homeowners with high-priced real estate could pay hundreds of dollars more on their regular mortgage payments. Higher rates could also affect lines of credit and student loans.

The good news about higher interest rates is that they also affect investments. That means your savings could give you higher returns as the rates start to climb. This is a good time to call your financial advisor and have a chat about how to best take advantage of any coming rate increases.

For the time being, interest rates aren't exactly rising quickly but are something to keep an eye on and think about when making financial decisions about investing and home ownership.

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