Interest rates have finally increased: How that could affect your loans + MORE Jul 13th

TORONTO — Canada’s five biggest banks are boosting their prime lending rates by 25 basis points, following an interest rate hike from the central bank.
Royal Bank of Canada (TSX:RY), the Bank of Montreal (TSX:BMO), TD Bank (TSX:TD), Scotiabank (TSX:BNS) and CIBC (TSX:CM) all announced Wednesday they are increasing their prime rates to 2.95 per cent from 2.7 per cent, effective Thursday.
The prime lending rate is the rate that banks use to set interest rates for variable-rate mortgages and other loans.
The moves comes after the Bank of Canada raised its key interest rate for the first time in seven years on Wednesday to 0.75 per cent from 0.5 per cent.
MORE ABOUT INTEREST RATES:

Why the Bank of Canada hiked interest rates
Bank of Canada raises key interest rate to 0.75%
What an interest rate hike could mean for you
Prep your portfolio for higher rates
Lock in your mortgage now, before a possible rate hike
Low interest rates have done their job: Poloz
Why bond prices fall as rates rise
What stocks to buy as rates rise

 
The post Big banks boost prime lending rates following BoC rate hike appeared first on MoneySense.

There were more than 11.7 million TFSA holders in 2014, according to the latest statistics available from the Canada Revenue Agency (CRA).
Slowly but surely, more and more Canadians are opening a TFSA to supercharge their savings (the 2017 TFSA contribution limit is set at $5,500).
The TFSA is very flexible. Unlike an RRSP, there are no withdrawal limits, making the tax-free savings account the perfect place for short- and medium-term savings goals, such as an emergency fund, a wedding, or a trip. It can also be used to save for retirement.
The TFSA is tax sheltered, meaning you don’t have to pay taxes on any capital gains, interest income, or dividend income earned. The ability to shield your investments from the CRA can translate into huge savings down the road.
Consider the following example: You’re 26, live in Alberta, and decide to put $5,500 in a TFSA annually (it’s worth noting that up until this point, you’ll have accumulated $52,000 in TFSA contribution room). The infographic below shows how much you’d make over 10 years in a TFSA vs…

The Bank of Canada increased its key interest rate on Wednesday morning. Learn about how an interest rate hike could affect your loans.

A veteran of the Canadian financial services and mortgage industry has been appointed the next CEO of Home Capital Group Inc., which is working to restore investor and customer confidence after the company appeared to be on the brink of collapse earlier this year.
Yousry Bissada, 57, will join the Toronto-based alternative mortgage lender on Aug. 3.
The announcement comes three weeks after Home Capital (TSX:HCG) earned a vote of confidence from famed American billionaire Warren Buffett, whose Berkshire Hathaway is investing in the company and providing much needed funding.
Berkshire Hathaway has agreed to buy up to $400 million in stock _ about 39 per cent Home Capital’s total equity _ and provide a $2 billion line of credit to offset cash that Home Capital customers have withdrawn from their savings accounts.
One of Bissada’s top priorities will be to select a new chief financial officer as Home Capital, the country’s largest supplier of alternative mortgages, undergoes sweeping changes to its senior management team and board of directors…

OTTAWA —The Bank of Canada has hiked its benchmark interest rate to 0.75 per cent from 0.5 per cent, its first increase in nearly seven years, amid expectations of stronger economic growth this year.
Such a move is bound to increase the costs of mortgages, home equity lines of credit and other loans linked to the big bank prime rates.
The Bank of Canada cut interest rates by a quarter of a percentage point twice in 2015 to help the economy deal with a plunge in oil prices, but it said Wednesday that adjustment has been made.
“The very strong growth of the first quarter is expected to moderate over the balance of the year, but remain above potential,” the bank said in a statement.
“Growth is broadening across industries and regions and therefore becoming more sustainable. As the adjustment to lower oil prices is largely complete, both the goods and services sectors are expanding.”
In its outlook for the Canadian economy, the Bank of Canada estimated growth to be 2…