Brace yourself: Interest rates could be on their way up if the economy improves as expected and inflation threatens to inch up.
Bank of Canada governor Mark Carney has been warning Canadians for months to whittle down debt so they aren't overly leveraged when record low interest rates start to rise.
In an address to the commons finance committee Tuesday, Carney further encouraged Canadians to look long term - not just the next few months - at affordability of new debt.
The central bank has not hiked rates since September 2010 but the honeymoon can't last forever. This is scary news for homeowners in the Lower Mainland who spend a lot on housing and every .25% hike will eat further into their savings or disposable income. But will be good news for mortgage-free folks, RRSP holders and those on limited pensions.
What do you think?Could you comfortably managea 1% to 2% rate hike on your mortgage or other debt? Vote in our online poll.
