Loans Canada CEO, Scott Satov joins Rogers Daytime Ottawa host, Derick Fage to discuss the Bank of Canada as they announce plans to raise the national interest rate. Scott examines the impact of rising interest rates and inflation on Canadian homebuyers, the mortgage stress test, and how to best prepare. For more information, watch the full interview below.
Main Points of Discussion
- The Bank of Canada is set to announce a rate hike.
- Rate hike and current inflation will affect consumers and the economy in numerous ways.
- Rising Interest rates coupled with inflation will lead to less demand for Canadian homes.
- Those who are still considering investing in a home will have to consider the lasting impact of rising rates and the mortgage stress test.
- The mortgage stress test evaluates whether or not a borrower will be able to continue to afford their home if interest rates continue to rise.
- A stress test is a financial check-up to make sure you are ready to take on a mortgage.
- The best way to prepare for rising interest rates and the mortgage stress test is by creating an effective budgeting plan and becoming familiarized with your own financial strengths and weaknesses.
- Canadians should equally consider their consumer debt and how it will affect their ability to qualify for a mortgage stress test now and in the future.
- Consulting expert advice like mortgage brokers or personal finance hubs like Loans Canada is highly recommended.
Daytime Ottawa by Rogers TV is produced and hosted by Derick Fage, covering all Canadian news and entertainment with weekly expert advice.
