How to go about securing the best savings strategy in Canada.
With the Canadian dollar hovering around $0.78 U.S., those who travel frequently to the U.S. (or just about every other country that accepts U.S. dollars over Canadian) are likely taking a financial hit with every purchase. If the cost of exchanging money back and force between currencies is putt.... More »
Every year, RateSupermarket.ca carefully analyzes the Canadian credit card and banking industry and awards the best products at its Best of Finance Awards. There will come various points in every person’s life when they’ll be required to make a financial choice. But when there are hundreds of b.... More »
The new school year is in full swing and if you’re a university or college student, then you’ve probably already settled comfortably into your new routine and dorm room. As you buy books, begin assignments and make new friends, the last thing you’re likely thinking about is your credit. But.... More »
Why you should use a U.S. account to build up savings..... More »
From personal loans to mortgages, simply put, it’s now more expensive and more difficult for Canadians to borrow money.
At the beginning of 2018, new mortgage rules raised the bar for qualification. Under federal law, all financial institutions are now required to put any new applicants under a strict “stress test”, regardless of their down payment amount. Borrowers have to prove they can still make payments at the greater of two options: either the five-year benchmark rate published by the Bank of Canada (currently 5.34 per cent), or the contractual mortgage rate plus two percentage points. Otherwise, those borrowers will not qualify for a mortgage.
And in recent news, the Bank of Canada raised its overnight lending rate to the highest level in almost ten years; the target is now 1.5 per cent. Commercial banks responded right away by raising their prime rate to 3.7 per cent. This means if you have a variable rate mortgage or have borrowed money from a line of credit, it is going to get more expensive to service…