The rise of canadian intrest rates

Grindtight

Grindtight

Well-known member
Trusted Member
Well like most Canadians were feeling the pinch of rising interest rates weather it's a morgage or line of credit or credit card.So got me thinking personally with me it would take me years to pay off present interst rates and I'm tired of it.So looks like il take some funds from my pension plan and pay it all off.What bothers me is paying the 30% withering tax.However it's a lot less then what the interest rated would accumulated to be over the years of cc or lines.
 
Grindtight said:
Well like most Canadians were feeling the pinch of rising interest rates weather it's a morgage or line of credit or credit card.So got me thinking personally with me it would take me years to pay off present interst rates and I'm tired of it.So looks like il take some funds from my pension plan and pay it all off.What bothers me is paying the 30% withering tax.However it's a lot less then what the interest rated would accumulated to be over the years of cc or lines.
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That's what I did, I paid everything off before saving. Pertly because the interest was higher than investments, which right now are a complete joke. Especially a mortgage.
If you are not already, change to weekly payments on your mortgage and you'll save a ton of interest. Now remember you may 2 extra payments a year, so figure that in when you calculate your weekly payment. I also found that doing it weekly, if I had an extra $20, I'd put it on. Yeah seems like nothing but little things add up over time.

Anyhow the good news is, gas is supposed to go up another 40 cents a litre with he new green energy tax, so everything should get more expensive again. Plus I believe there is a carbon tax increase coming as well.
 
Sorbate said:
That's what I did, I paid everything off before saving. Pertly because the interest was higher than investments, which right now are a complete joke. Especially a mortgage.
If you are not already, change to weekly payments on your mortgage and you'll save a ton of interest. Now remember you may 2 extra payments a year, so figure that in when you calculate your weekly payment. I also found that doing it weekly, if I had an extra $20, I'd put it on. Yeah seems like nothing but little things add up over time.

Anyhow the good news is, gas is supposed to go up another 40 cents a litre with he new green energy tax, so everything should get more expensive again. Plus I believe there is a carbon tax increase coming as well.
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Its getting pretty bad seriously !!! Gotta know where to save !!! 20 bucks is 20bucks !!!
 
Sorbate said:
That's what I did, I paid everything off before saving. Pertly because the interest was higher than investments, which right now are a complete joke. Especially a mortgage.
If you are not already, change to weekly payments on your mortgage and you'll save a ton of interest. Now remember you may 2 extra payments a year, so figure that in when you calculate your weekly payment. I also found that doing it weekly, if I had an extra $20, I'd put it on. Yeah seems like nothing but little things add up over time.

Anyhow the good news is, gas is supposed to go up another 40 cents a litre with he new green energy tax, so everything should get more expensive again. Plus I believe there is a carbon tax increase coming as well.
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Yes me.and wife have bi weekly on morgage and not huge like some people over the 500,000k mark yikes ...However wifey cripes about interest rates to me like it's my fault and I laugh yet she wants to go to cuba twice a year gesss.lol
 
Funny thing is interest is cheap. Most people don't realize that. Interest is less than inflation. If you are using it to buy an appreciating asset you are going in the right direction.
 
3ml said:
Funny thing is interest is cheap. Most people don't realize that. Interest is less than inflation. If you are using it to buy an appreciating asset you are going in the right direction.
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Maybe you are good at investing, but mine in the last year didn't do much, for sure under our rate of inflation. I left a huge chunk in a 5% account and it at least made some money.
Things were a bit better last couple months, but last year, crap.
Where i kick my ass is I didn't buy the 2 townhouses and the house down the street precovid. I'd have another million in the bank, instead I put it on the stock market, lol
 
Depending on how many assets you have versus how much debt you have maybe a consumer proposal or bankruptcy is better than taking out your pension? Don't know much about finance but that's what I did and I should have it dealt with before I re up on the mortgage not proud of it but it is what it is.
 
Sorbate said:
Maybe you are good at investing, but mine in the last year didn't do much, for sure under our rate of inflation. I left a huge chunk in a 5% account and it at least made some money.
Things were a bit better last couple months, but last year, crap.
Where i kick my ass is I didn't buy the 2 townhouses and the house down the street precovid. I'd have another million in the bank, instead I put it on the stock market, lol
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Basically what I am saying is the canadian dollar is garbage. The Mexican Peso is vastly outperforming it for the last many months.

Trudeau has printed so much CAD it isn't worth shit. Look at the price of everything. It looks like it's getting more expensive but in reality people aren't willing to give up items of value for our devalued currency.

Mexico didn't go on a printing spree so they are sitting much better.

Basically anything you buy wether it be food, a new truck, a house, gold, stocks. You are probably better off paying interest on those items rather than dollars sitting on your bank.

We are headed to hyper inflation. I have a friend in Argentina. He said most companies have switched to weekly pay. People need to spend their cheques as fast as they can. This is the direction we are headed.
 
3ml said:
Basically what I am saying is the canadian dollar is garbage. The Mexican Peso is vastly outperforming it for the last many months.

Trudeau has printed so much CAD it isn't worth shit. Look at the price of everything. It looks like it's getting more expensive but in reality people aren't willing to give up items of value for our devalued currency.

Mexico didn't go on a printing spree so they are sitting much better.

Basically anything you buy wether it be food, a new truck, a house, gold, stocks. You are probably better off paying interest on those items rather than dollars sitting on your bank.

We are headed to hyper inflation. I have a friend in Argentina. He said most companies have switched to weekly pay. People need to spend their cheques as fast as they can. This is the direction we are headed.
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Yep it will be the 80's all over again. Hey, who was in power before the last time everything fucked up, lol.
 
My preference was to "pay the piper" which means I was not financially responsible until I was 39. I set a strict budget based upon needs not wants and stuck to it. Very long story however after 11yrs I can now retire reasonably comfortably and the budget has been relaxed in a responsible way so I have good balance :) When I stopped playing from behind I started to get ahead.....
 
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