Tips & Advice

Infographic: 6 strategies to combat rising interest rates

The bank offered prime rate is dangerously close to 4% and heading towards 5%, perhaps even 6%, with each Bank of Canada rate hike. Now is the time to learn a few strategies to minimize the impact of rising rates
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Are you ready for higher interest rates? Remember, interest is the portion of a loan paid by a borrower to a lender to compensate the lender for lending the money in the first place. In essence, interest is “the cost of money.” The big question is how does a borrower prepare for rising interest rates?

For the last decade, borrowers and buyers have enjoyed historically low interest rates but the days of the sub-1% overnight rate has ended and now the bank-lending prime is heading closer to 4%, eventually 5% and perhaps even 6%.

5 ways an interest rate impacts your budget

Now, with mortgage rates on the rise, it’s probably a good time to learn (or refresh) a few strategies to minimize the impact of rising rates. Here are six strategies to reduce the impact of rising interest rates and prepare yourself as a homebuyer.

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Romana King
Romana King

Romana is an award-winning personal finance writer with an expertise in real estate. She is obsessed with the property marketplace and is the current Director of Content at Zolo.